Bank stocks slump on fears flood-relief measures will pressure NIM; brokers recommend buying KBANK, KTB, KKP, TTB

Kaohoon··TH·Read original
3▲0 ▼6Impact / 5
Summary · why it matters

Banking stocks fell sharply in trading on September 30, 2026, after the market worried that relief measures for customers affected by flooding would pressure net interest margins, or NIM. As of 11:04 a.m., KBANK stood at 232 baht, down 10 baht or 4.13%; KTB at 41 baht, down 2.25 baht or 5.20%; BBL at 185.50 baht, down 3.50 baht or 1.85%; SCB at 149.50 baht, down 3.50 baht or 2.29%; TTB at 2.92 baht, down 0.08 baht or 2.67%; and KKP at 109.50 baht, down 3 baht or 2.67%. KGI Securities (Thailand), or KGI, disclosed that several commercial banks have rolled out relief measures to help both retail loan customers and SME business loan customers, covering everything from a three-to-six-month suspension of interest payments, reduced principal repayments, lower monthly instalments, extended debt repayment periods, to special interest rates. For SME customers, most banks are offering extra help, such as additional working capital loans and special-rate loans of around 3.5%. Combined with assistance from state specialised financial institutions, or SFIs, this is expected to support borrowers nationwide comprehensively. KGI assesses that KTB will be hit hardest, as retail customers make up as much as 40% of its total loans, followed by SCB at 15%, then KBANK at 10%, and BBL at less than 10%. However, the research team views these measures as an opportunity for banks to accelerate debt restructuring, which would help ease pressure on bad-debt provisioning expenses. It forecasts bad-debt provisioning expenses in 2026 at 1.04% for KTB, 1.24% for BBL, 1.50% for KBANK, and 1.62% for SCB. It maintains an Overweight stance on the commercial banking sector even though these stocks have underperformed the SET Index recently, and it expects the floods will not significantly affect the overall economy or GDP growth. It sees the share price pullback as an opportunity to accumulate, and picks KBANK, KTB, KKP, and TTB as its top buy recommendations.

Impact on assets 7

Financials▼ · 5 stocks
TMBThanachart Bank Public Company Limited
TTB
▼ NegativePricingrelevance

TTB shares fell as flood-relief measures (interest-payment suspensions, reduced instalments, special rates) are feared to pressure banks' net interest margins.

Digital Finance & Tokenization▼ · 2 stocks
Bangkok Bank PCL
BBL
▼ NegativePricingrelevance

Flood-relief measures (interest suspensions, reduced repayments, special rates) are expected to pressure net interest margins, hitting BBL's lending profitability.

SCB X Public Company Limited
SCB
▼ NegativePricingrelevance

SCB's flood-relief measures, with retail loans at 15% of its book, are expected to pressure net interest margins.

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