Brokers Recommend “Buy” on KTB With Strong Dividend Outlook for 2026

Payong Srivanich, President of Krung Thai Bank Public Company Limited (SET: KTB ), revealed to “Kaohoon” that the bank’s direction in the second half of 2026 remains subject to high uncertainty due to ongoing volatility in both domestic and global economic factors. Consequently, the bank must operate with prudence and increase caution in its planning. Nevertheless, the bank continues to adhere to its main strategies and directions without making significant structural changes in the short term. The bank will closely monitor the situation and adapt to the rapidly changing environment. In this unpredictable economic climate, the bank has chosen to implement prudent management, focusing on assessing situations and waiting for the right opportunities, rather than hastily overhauling major strategies. This approach allows for comprehensive risk management while also considering shareholders’ expectations regarding returns and dividends, alongside building sustainable long-term growth. Regarding the economic outlook and government policies, Payong noted that the government’s policy direction is clear and in line with the rapidly changing global economic context. However, the key factor is execution; if policies are efficiently enacted, it will greatly support the recovery of the Thai economy. Additionally, effects from government economic stimulus measures are starting to emerge, with business activities in certain sectors showing signs of recovery and increased activity. In terms of risk management, the bank views that both the global and Thai economies are facing increasing and rapid disruption, resulting in a distinctly K-Shaped economic recovery—uneven recovery across different business groups and economic sectors. As a result, KTB has intensified its monitoring of asset quality and management of non-performing loans (NPL) to mitigate potential future risks and maintain the stability of its loan portfolio. At the same time, the bank is pushing forward with expanding its wealth management business through the investment-led strategy, focusing on three main areas: generating appropriate and sustainable returns for clients, planning intergenerational wealth transfer, and proactive risk management. Pi Securities recommended “Buy” on KTB with a target price of THB 38.50, expecting net profit growth of 1% in 2026 and the bank to maintain a double-digit ROE at 10.2%. Meanwhile, the bank’s capital fund remained strong at 21% as of 1Q26, supporting the ability to pay high dividends. The dividend yield is projected at 6.4%, with a possibility of special dividends similar to last year. DBS Vickers Securities (Thailand) raised its recommendation on KTB from “Hold” to “Buy” and adjusted the target price to THB 38.50, citing the bank’s upside from expansion in net interest margin (NIM) and strong growth in non-interest income (Non-NII). Proactive ECL provisions in the first quarter are expected to ease credit cost pressures going forward. For credit growth targets this year, KTB is aiming for 0–2%, focusing on selective retail loans and SME loans via the SME Credit Boost program, while government sector loans will mainly serve as liquidity management tools. Krungsri Securities also recommended “Buy” on KTB with a target price of THB 38. The firm expects the bank to maintain a roughly 7% dividend yield, with further long-term dividend increases possible. KTB is also expected to sustain a 10% ROE and maintain lower asset quality risk than many other banks, as most debtors are low-risk with strong credit quality.