Phillip Optimistic on SCB, Emphasizes Robust Loan Growth and Attractive Dividend

On Friday at 10:52 AM (Bangkok time), the share price of SCB X Public Company Limited (SET: SCB ) rose by 0.74% or THB 1.00 to THB 135.50, with a trading value of THB 483.67 million. Phillip Securities (Thailand) has provided an analysis of SCB , highlighting its credit growth and attractive dividend policy. In April, despite only modest loan growth of 0.05% month-on-month, SCB continued to lead the sector in loan expansion, while the only bank to see a contraction in loan volume was TISCO, with a decline of 0.26% month-on-month. Nonetheless, SCB remains the leader in terms of year-to-date loan growth in 2026, with an increase of 3.33%, followed by BBL at 3.13%. The primary driver for this growth continues to be large corporate lending. SCB’s dividend policy also remains attractive. Since 2023, the bank has raised its payout ratio to 80% and has maintained this level consistently. The brokerage expects SCB to sustain this payout ratio through 2026 and project a dividend payment of THB 11.48 per share, reflecting a dividend yield of 8.5%. The dividend is expected to be higher in the second half of 2026, while the first half is projected to see a dividend of THB 2 per share, yielding around 1.5%. Phillip maintains its earnings forecast for SCB in 2026 at THB 48 billion, representing a 1.8% year-on-year increase. While net interest income is expected to decline due to lower lending rates, this will likely be offset by a decrease in funding costs and a reduction in provisioning, thereby supporting higher net profits. Following these, the brokerage gives a ‘Buy’ recommendation for SCB, with a base price held at THB 145 per share, amid the bank’s high dividend yield and further upside potential.