“Bloomberg” Expects Thai Banks to Pay High Dividend as Income Continues to Grow in 2022

“Bloomberg” Expects Thai Banks to Pay High Dividend as Income Continues to Grow in 2022.

The share price of the banking sector edged higher yesterday in anticipation of the 2020 dividend-payment season after the Bank of Thailand, last year, approved Thai financial institutions to pay dividends for the year 2020 not exceeding last year’s payout ratio and 50% of net profit.

 

In November 2020, the Bank of Thailand (BOT) stated that the stress test results for the year 2020 – 2022, showed that financial institutions had adequate levels of capital and loan loss provision to withstand the impact of COVID-19.

However, due to the high uncertainty in the near future, the BOT supported the preventive measures by allowing financial institutions to pay dividends for the year 2020 not exceeding last year payout ratio and 50% of this year’s net profit. The move was in line with the guidelines of many overseas regulators and will benefit financial institutions’ shareholders, depositors, and debtors in the long run.

Kaohoon International has compiled data of the banking sector, generated by Bloomberg Consensus, to provide investors with an insight to the upcoming dividend season and the outlook of the banking sector in the future.

According to the data, generated by Bloomberg Consensus, Bank of Ayudhya Public Company Limited (BAY) will pay a dividend from its 2020 operations at 0.62 baht per share, while having a dividend yield of 2.02% in 2021. The consensus estimated BAY to report a net profit of 25,316 million baht in 2021 and 26,128 million baht in 2022, representing an increase from a net profit of 23,039 million baht in 2020.

 

Bangkok Bank Public Company Limited (BBL) will pay a dividend from its 2020 operations at 4.10 baht per share, while having a dividend yield of 3.92% in 2021. The consensus estimated BBL to report a net profit of 25,057 million baht in 2021 and 28,358 million baht in 2022, representing an increase from a net profit of 17,180 million baht in 2020.

 

Kasikornbank Public Company Limited (KBANK) will pay a dividend from its 2020 operations at 2.66 baht per share, while having a dividend yield of 2.49% in 2021. The consensus estimated KBANK to report a net profit of 32,764 million baht in 2021 and 35,448 million baht in 2022, representing an increase from a net profit of 29,487 million baht in 2020.

 

Kiatnakin Phatra Public Company Limited (KKP) will pay a dividend from its 2020 operations at 2.82 baht per share, while having a dividend yield of 5.72% in 2021. The consensus estimated KKP to report a net profit of 5,606 million baht in 2021 and 6,115 million baht in 2022, representing an increase from a net profit of 5,123 million baht in 2020.

 

Krung Thai Bank Public Company Limited (KTB) will pay a dividend from its 2020 operations at 0.41 baht per share, while having a dividend yield of 3.77% in 2021. The consensus estimated KTB to report a net profit of 17,032 million baht in 2021 and 20,692 million baht in 2022, representing an increase from a net profit of 16,731 million baht in 2020.

 

LH Financial Group Public Company Limited (LHFG) will pay a dividend from its 2020 operations at 0.03 baht per share, while having a dividend yield of 2.88% in 2021. The consensus estimated LHFG to report a net profit of 2,188 million baht in 2021 and 2,484 million baht in 2022, representing an increase from a net profit of 2,056 million baht in 2020.

 

The Siam Commercial Bank Public Company Limited (SCB) will pay a dividend from its 2020 operations at 3.51 baht per share, while having a dividend yield of 3.93% in 2021. The consensus estimated SCB to report a net profit of 29,661 million baht in 2021 and 34,497 million baht in 2022, representing an increase from a net profit of 27,217 million baht in 2020.

 

Thanachart Capital Public Company Limited (TCAP) will pay a dividend from its 2020 operations at 2.93 baht per share, while having a dividend yield of 7.23% in 2021. The consensus estimated KKP to report a net profit of 4,293 million baht in 2021 and 4,745 million baht in 2022, representing an increase from an estimated net profit of 6,829 million baht in 2020.

 

Tisco Financial Group Public Company Limited (TISCO) will pay a dividend from its 2020 operations at 4.80 baht per share, while having a dividend yield of 6.77% in 2021. The consensus estimated TISCO to report a net profit of 6,456 million baht in 2021 and 6,962 million baht in 2022, representing an increase from a net profit of 6,063 million baht in 2020.

 

TMB Bank Public Company Limited (TMB) will pay a dividend from its 2020 operations at 0.04 baht per share, while having a dividend yield of 3.53% in 2021. The consensus estimated TMB to report a net profit of 11,258 million baht in 2021 and 14,021 million baht in 2022, representing an increase from a net profit of 10,112 million baht in 2020.