Thailand’s TMBThanachart Bank eyes higher dividend payouts in 2024: analyst

The bank’s net profits rose 24% in Q1 compared to a year ago.

Expect a higher dividend payout from TMBThanachart Bank (TTB), as the Thai lender has guided that it is in the process of improving payouts further this year, according to a report by UOB Kay Hian.

TTB has already raised its dividend payout from 50% in 2022 to 55% in 2023. In total, the bank has proposed an interim dividend of THB0.05, for a total of THB0.105 per share to be paid out for 2023.

This comes as the bank posted a net profit of THB5.3b for Q1, 24% higher than a year ago and 10% higher than in Q4 2023. This exceeded forecasts by 7%, says UOB Kay Hian analyst Tanaporn Visaruthaphong and assistant analyst Thanawat Thangchadakorn in a report.

THB’s stronger profits was thanks to a tax benefit of THB1.4b that was utilised this quarter.

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THB’s nonperofrming loans (NPL) also declined to 2.56% of loans from 2.62% in Q4 2023. However, the share of formation of new bad loans slightly increased to 1.7% in Q1, from 1.4% in the past two quarters. 

Loan loss coverage remains at 155%. THB’s management has reportedly expressed confidence in their current LLC coverage.

“Besides, management reaffirms that the bank will remain prudent and selectively grow with a focus on good quality loans,” said Visaruthaphong and Thangchadakorn.