Bank of Ayudhya PCL

Kasikornbank, KKP, and Krungsri (Bank of Ayudhya) have announced interim dividend payments, with KKP paying the highest at 3.25 baht per share, followed by Kasikornbank at 2.00 baht and Krungsri at 0.60 baht. All three banks will set the XD (ex-dividend) date on September 9, 2026. Kasikornbank has resolved to pay dividends from retained earnings, with the record date for shareholders entitled to receive dividends set for September 10, and payment on September 25. Meanwhile, KKP will pay from its first-half operating results, and individual shareholders can claim a dividend tax credit at a rate of 20/80 under Section 47 Bis of the Revenue Code. Krungsri will pay from retained earnings, with dividend payment scheduled for September 24.

Bank of Ayudhya (BAY) has approved an interim dividend payment of 0.60 baht per share. The record date is set for September 10, 2026, with the ex-dividend date on September 9, 2026. The dividend will be paid on September 24, 2026, from retained earnings. BAY shares closed on August 26, 2026, at 40.75 baht, up 0.25 baht or 0.62%, with a trading value of 27.57 million baht.

Krungsri Auto Broker has extended its partnership with Generali Life Assurance Thailand for another 5 years, bringing the alliance to 14 years. The focus is on developing single premium payment protection insurance for auto loans, known as PPI Single Payment, to align with customers' installment obligations. Mr. Arch Colmi, Chief Executive Officer of Generali Thailand Group, said the partnership over the past 9 years has developed accessible and flexible coverage, and this renewal will build on products to support more diverse needs. Mr. Pornthep Thirasoontarakul, Managing Director of Ayudhya Capital Auto Lease Public Company Limited, said that although this year's auto loan market still faces challenges from the economic situation, there are opportunities from the growth of the electric vehicle market and rising demand for protection. Customers can learn about service details through the GO by Krungsri Auto app and 52 Krungsri Auto branches nationwide.

American Express has announced partnerships with Kasikornbank, Bank of Ayudhya, and Siam Commercial Bank to expand its card acceptance network across Thailand, aiming to bring premium spending power into the Thai economy. Premium cardholders spend up to three times more annually than other card networks. Between 2023 and 2025, the number of Amex card members travelling to Thailand rose 47 percent, in line with the government's High Value Tourism policy. Sirisun, Country Manager for Thailand, said the expansion of card acceptance will cover travel, dining, and lifestyle categories to serve both members in Thailand and premium tourists from around the world. Currently, Amex is accepted at more than 170 million merchants worldwide, and the number of merchants accepting the card has doubled since 2021.

The Metropolitan Electricity Authority is preparing to offer its first environmental conservation bond of 2026, with a total value not exceeding 2 billion baht. The bond has a 5-year maturity and a fixed coupon of 1.84% per annum, payable semi-annually. It will be offered exclusively to institutional investors from August 6 to 10, with Bank of Ayudhya acting as arranger and registrar. The bond has received the highest credit rating of AAA from TRIS Rating and is supported by an independent reviewer's opinion, with proceeds to be used for environmental conservation projects under the Green Finance Framework.

Bank of Ayudhya, or BAY, reported second-quarter 2026 net profit of 8.3 billion baht, down 3.8 percent from the previous quarter and flat year-on-year, missing analyst forecasts by 9 percent. Pressure came from non-interest income, which fell 4.5 percent quarter-on-quarter, as investment gains, debt recovery income from the Clear Debt, Move Forward programme, and gains on asset sales declined. As a result, pre-provision operating profit dropped 2.9 percent from the prior quarter, even though net interest income slipped only 0.3 percent quarter-on-quarter and the net interest margin widened to 4.65 percent, helped by deposit cost management. The cost-to-income ratio stood at 45.5 percent, while provisioning expenses were stable. For the first half of 2026, net profit reached 16.9 billion baht, up 6.8 percent year-on-year, representing 52.3 percent of the full-year estimate. Total loans grew 0.4 percent from end-2025, or 0.8 percent excluding the impact of the HCID status change, supported by corporate loans which expanded 6.0 percent from end-2025, particularly in AI and electronics. SME loans contracted 4.2 percent from end-2025, and retail loans fell 2.0 percent from end-2025, remaining soft amid an uneven economic recovery. Asset quality, however, stayed resilient, with the non-performing loan ratio declining to 3.08 percent and the coverage ratio rising to 137.9 percent, even though credit costs came in at 2.36 percent, slightly above the target range due to additional provisioning to cushion against economic uncertainty. Analysts upgraded the stock to “Buy” with a year-end 2027 target price of 47.50 baht, based on a price-to-book value of 0.8 times. Key positives include a growing electric vehicle loan book, expected to reach around 10 to 15 percent of the auto loan portfolio, which currently accounts for about 25 percent of total loans. There is also an expectation of a higher dividend payout ratio from the current 30 percent, which is the lowest in the sector, given that the peer average payout ratio is 66 percent. BAY is seen as having room to raise its payout in line with the trend of increasing shareholder returns. The dividend yield for 2026 to 2028 is forecast at 3.1 to 3.4 percent, compared with the sector average of 5.6 percent, and an interim dividend for the first half of 2026 is expected at 0.40 baht per share.

Pi Securities assesses that eight commercial banks will pay high interim dividends, with the full-year average dividend yield for the banking group expected at 5.7%, excluding special dividends. Thanadech Rungsrithananon, Director of Research at Pi Securities, notes that SCB, KKP, and TISCO will have dividend yields of no less than 6%. SCB is expected to pay 10.42 baht per share for the full year, representing 6.8%. KKP is expected to pay 7.50 baht per share, representing 6.3%. TISCO is expected to pay 7.75 baht per share, representing 6%. For BBL, despite a decline in profit, it is still expected to pay the same 10 baht per share for the full year, representing 5.3%. KBANK is expected to pay 12 baht per share for the full year, representing 5.1%. Meanwhile, KTB is expected to pay 2.09 baht per share, representing 5%. TTB is expected to pay 0.13 baht per share, representing 4.6%. CREDIT is expected to pay 1.05 baht per share, representing 4.5%. BAY is expected to pay 1.40 baht per share, representing 3.5%. Regarding the profit trend for the second half of the year, Thanadech views that if capital market income is excluded, profits will not be spectacular, as net interest margins are starting to stabilize and loans may rise slightly in line with private sector investment.

Krungsri Auto reported its motorcycle loan portfolio for the first half of 2026 grew 9 percent, reaching 40,166 million baht, with new loan volume up 8 percent compared to the same period last year. Although Thailand's motorcycle market still faces challenges from high household debt and an economic slowdown, the company's digital channels saw new loan volume grow by 18 percent, supporting overall growth. The company targets outstanding loans of 42,061 million baht by the end of 2026 and a 45 percent market share, while continuing to build the first ecosystem for two-wheel riders in Thailand through digital credit line innovation, comprehensive products, and connecting motorcycle user lifestyles.

The 20th MONEY EXPO 2026 KORAT will be held from August 7 to 9, 2026, at MCC Hall, 3rd floor, The Mall Korat, under the concept “AI WEALTH CREATION: Driving Wealth with AI Power.” A key highlight is SME loans from SME D Bank offering a fixed interest rate of 3% for 3 years, along with tax-free deposits from Krungthai ZERO TAX MAX providing up to 1.60% per annum. Additionally, there are many promotions from leading financial institutions, such as home loans at 0% interest for 3 months from Krungsri, car loans starting at 0.25% per month from Siam Commercial Bank, and personal loans with a minimum rate of 9.99% per annum from Krungsri. On the savings side, there are tax-free deposits from Krung Thai Bank offering 1.60% per annum for 24-month terms, and Government Savings Bank’s Om Rak savings account providing 0.35% per annum with accident coverage. Insurance buyers at the event can receive up to 8% cashback every year, along with gifts such as gold bars, iPhone 17 Pro Max, and Samsung Galaxy S26, subject to each institution’s conditions.

The Bangkok Mass Transit Authority, or BMTA, has successfully offered its first sustainability bond worth 4.5 billion baht, with a 6-year maturity and a coupon of 1.74 percent per annum. The subscription was oversubscribed by 1.65 times the offer amount. The bond is guaranteed as to principal and interest by the Ministry of Finance, with Government Savings Bank and Bank of Ayudhya acting as arrangers. The proceeds will be used to restructure debt and procure 1,520 electric buses, which have been set as key performance indicators for reducing greenhouse gas emissions and tackling air pollution.

Bank of Ayudhya, or BAY, announced an upgrade of its foreign exchange services this year to cope with global financial market volatility, focusing on digital and new currencies. Hirotaka Kuroki, Head of Global Markets, revealed that Krungsri's profit from trade and foreign exchange transactions grew at a compound annual growth rate of 16 percent over the past five years. While Thailand's import and export value grew over 60 percent in the past decade, FX transaction volume through commercial banks grew only 5.7 percent, reflecting changes in business sector behavior. Krungsri Global Markets has therefore set three strategies for 2026: upgrading to full Digital FX via online channels and FX API, expanding services for new currencies such as South Korean won, UAE dirham, and Saudi riyal, which were already launched in the fourth quarter of 2025, and developing risk management and investment solutions by leveraging AI and automation to support FX dealers.

Bank of Ayudhya has disclosed that Thai businesses are increasingly turning to alternative currencies beyond the US dollar and yen, with imports using alternative currencies growing by as much as 132.5% and exports growing by 87.7% compared to 2022, clearly reflecting the entry into a multi-currency era. This is particularly driven by rising demand for the Chinese yuan, in line with Bank of Thailand statistics on imports from China, as well as other currencies in the Middle East and Asia, such as the South Korean won, the UAE dirham, and the Saudi riyal. Although alternative currencies are growing strongly, the US dollar remains the dominant currency with the highest share, followed by the euro and yen. Mr. Hirotaka Kuroki, Head of Global Markets, said that the future competitiveness of Thai businesses will include the ability to manage exchange rate risk, and outlined a three-pronged strategy: upgrading digital services, delivering multi-currency solutions, and developing hedging tools. For first-half performance, the business generated income from financial instruments measured at fair value of up to 4.4 billion baht, growing around 13 to 14 percent from the same period last year, supporting the bank's overall net profit expansion of around 6.8 to 7 percent. On the baht, Ms. Rung Sanguanruang, Senior Director of Global Markets Planning, noted that since the beginning of the year it has moved in a range of 30.90 to 33.80 baht per dollar, its weakest in 15 months, and has depreciated by more than 6 percent. It is expected to move in a range of 32.00 to 34.00 baht per dollar in the fourth quarter, while maintaining Thailand's GDP forecast at 1.9 percent and foreign tourist arrivals at 32.5 million. Meanwhile, foreign investors have turned to net buying in Thai stocks and bonds, bucking the regional trend, supported by energy prices passing their peak, signs of a new investment cycle, expanding tech exports, seasonal tourism momentum, and confidence-building monetary and fiscal policies. The Monetary Policy Committee is expected to keep the policy rate at 1 percent for several more quarters.

Bank of Ayudhya, or BAY, disclosed that foreign investors have started to show renewed interest in the Thai stock market after several years of net selling. This is supported by volatility in global equity markets, particularly in South Korea where profit-taking has prompted some investors to park funds in Thai equities. The trend is further bolstered by improving earnings among Thai listed companies, domestic investment, and political stability that supports confidence. In addition, dividend yields across many industry groups remain high compared with the bond market, attracting more foreign inflows into equities than into fixed income. BAY is confident that foreign capital will continue to flow in gradually, with a chance that foreign investors could return as net buyers to the tune of billions of baht. Although this year’s inflows may not be as large as during the post-reopening period in 2022, positive signs are already emerging from net buying in the past month and the current month. As for the baht, which has weakened due to surging imports that pushed the current account into deficit, BAY sees supportive factors from oil prices trading well below their peak and from capital inflows. The bank expects the baht to have a chance to strengthen slightly and fluctuate in a range of 32 to 34 baht per US dollar during the final quarter of 2026, assuming the Federal Reserve holds rates under its baseline scenario and Thailand’s trade balance improves.

Eleven Thai commercial banks reported combined net profit for the first half of 2026 at 134.043 billion baht, down 0.34% from the same period last year. Kasikornbank posted the highest net profit at 27.915 billion baht, up 6.22%, while Krungthai Bank recorded net profit of 24.562 billion baht, up 7.6%, and SCB X reported net profit of 21.312 billion baht, down 16%. Bangkok Bank had net profit of 20.491 billion baht, down 16.21%, and Bank of Ayudhya posted net profit of 16.912 billion baht, up 6.8%. Among mid-sized banks, TMBThanachart Bank reported net profit of 10.683 billion baht, up 6%, Kiatnakin Phatra Bank posted net profit of 4.078 billion baht, up 65%, Tisco Bank had net profit of 3.497 billion baht, up 6.4%, LH Financial Group reported net profit of 1.538 billion baht, up 37.32%, and CIMB Thai posted net profit of 1.488 billion baht, up 47.03%.

The second-quarter earnings of the commercial banking group came in better than market expectations, mainly supported by lower provisions and improved fee income. After TISCO and TTB reported their results, analysts at Yuanta Securities noted that the easing situation in the Middle East helped reduce provisions, while the bancassurance and mutual fund businesses gained better momentum. However, the second-half trend is expected to slow due to seasonal factors and an unusually high revenue base earlier in the year. On investment strategy, they recommend taking profits in tranches or short-term speculation, highlighting SCB and KBANK as top picks for their high dividends and potential target price upgrades. Meanwhile, Kasikorn Securities favors BBL, KTB, KKP, and BAY, expecting loans to return to slight growth and asset quality to strengthen.

Bank of Ayudhya, or BAY, reported a second-quarter 2026 net profit of 8.293 billion baht, stable from the same period last year, and a first-half net profit of 16.912 billion baht, up 6.8% from the first half of 2025. Growth was supported by the expansion of large corporate and ASEAN business loan portfolios, higher net fee and service income, and effective management of financial costs and operating expenses. Total loans rose 0.4% from the end of 2025, with large corporate and ASEAN customer portfolios growing 6.0% and 5.1%, respectively. Net interest margin improved to 4.60% from 4.14% in the first half of 2025. The non-performing loan ratio declined to 3.08% from 3.26% at the end of 2025, and the bank's capital adequacy ratio stood at 20.20%. Mr. Kenichi Yamato, President and Chief Executive Officer, said the strong performance aligns with the 2026 strategy focusing on quality loan growth, efficient balance sheet management, and prudent risk management amid a slowing economy. Krungsri forecasts Thailand's economic growth at 1.9% for 2026.

Mitsubishi UFJ Financial Group announced on the 6th that it has signed a memorandum of understanding with major credit card company JCB for a strategic comprehensive partnership in ASEAN. Leveraging both companies' customer bases and financial and payment networks, they aim to expand their business in the region by strengthening services for wealthy individuals. As a key pillar of the partnership, they will collaborate with MUFG Bank's partner banks, such as Thailand's Bank of Ayudhya and Indonesia's Bank Danamon, to combine JCB's international payment network and merchant base, offering services that integrate finance and payments. As a first initiative this fiscal year, they plan to issue JCB's highest-tier overseas card in Indonesia. They will also explore combining the payment functions of JCB with digital financial businesses in which MUFG has invested, to enhance cross-border and mobile payment capabilities.