Thai banks increase focus on capital management

Local banks have intensified their capital management efforts to boost shareholder returns amid a slowdown in business expansion.

- SOMRUEDI BANCHONGDUANG

They have continued to implement share buyback programmes and interim dividend payments as key capital management tools to improve earnings per share (EPS) and return on equity (ROE).

"The focus on capital management primarily stems from the banking industry's excess liquidity and strong Tier-1 capital position, amid slower loan growth in line with current economic conditions," said Pasakorn Wangvivatcharoen, fundamental investment analyst for the capital market at Asia Plus Securities.

For example, Kasikornbank (KBank) has announced a new share repurchase programme worth 8.8 billion baht, equivalent to 2% of total paid-up capital. The programme will run from Nov 14, 2025, to May 13, 2026, according to its statement to the Stock Exchange of Thailand.