TMBThanachart Bank Public Company Limited or TMBThanachart (ttb) notified the Stock Exchange of Thailand that its Board of Director's Meeting has passed a resolution to further propose a dividend agenda to the Annual General Meeting of Shareholders (AGM) on 21 April 2025. In this regard, the Bank will seek approval for the dividend payment at 60% of 2024 net profit and the budget of THB 6,312 million for the second dividend payment. The ex-dividend (XD) date is 25 April 2025, and the payment date (cash dividend) is 20 May 2025.
Mr. Piti Tantakasem, CEO of TMBThanachart, mentioned: For 2024 operating results, the Bank made an interim dividend payment at 0.065 baht per share in October 2024. The Bank will seek approval to pay the second dividend amounting to THB 6,312 million or an initial dividend per share of 0.064 to 0.067 baht. As a result, the total dividend per share (DPS) in 2024 is approximately 0.13 baht, a 24% increase from the DPS of 0.105 baht paid in the previous year. For the final DPS, the Bank will notify shareholders on 4 April 2025 after factoring in the results of share repurchase transactions and the exercise of TTB-W1.
In total, the full-year dividend payout ratio is 60% of net profit generated in 2024. This payout is higher than 55% of the previous year and implies a dividend yield of approximately 7%, given TTB's share price at 1.86 baht per share at the end of 2024. Overall, the dividend return is among the highest in the banking sector.
Mr. Piti elaborated on the Bank's ongoing capital management initiatives: "As economic recovery remains slow, the Bank continues to focus on growing quality loans and enhancing efficiency in managing funding cost, operating cost, and risk cost. Such executions are key drivers for Banks to maintain profitability momentum and a strong capital level. Currently, the Bank's capital adequacy ratio (CAR) is at 19.3%, which is significantly above the BoT's minimum requirement of 12.0%."
As a result of robust capital position, the Bank has flexibility to utilize the excess capital, leading to a capital management plan with an aim to create value for existing shareholders through 3 key initiatives.
- Dividend payout uplift from a pre-merger level of 30% - 35% to 50% - 55% in 2022 - 2023 and 60% in 2024.
- ROE enhancement from a 3-year share repurchase program worth THB 21,000 million.
- Inorganic growth as the Bank will seek shareholders' approval to acquire shares in Thanachart Securities and ongoing due diligence to explore the opportunities with TLeasing to strengthen ecosystem play strategy.
"All of these reflect the Bank's commitment to create value for shareholders in the short and long-term. We will continue to focus on prudent business direction to create sustainable growth, and efficient capital management to ensure the Bank's readiness for future business expansion and to sustain high dividend payment in the long run."
Source: TMBThanachart Bank