BAY shares rose 3.29%, extending yesterday's sharp 5.56% gain and running counter to the broader banking sector, most of which declined. At 10:25 a.m., the stock stood at 39.25 baht, up 1.00 baht, with trading value of 41.00 million baht, from an opening price of 38.00 baht, a high of 39.25 baht and a low of 37.75 baht. Mr. Korakot Sevetkrutmat, Director of Securities Analysis at Kasikorn Securities, said he holds a positive view on BAY based on expectations that its third-quarter 2026 results will come in better than those of other banks, with profit likely to grow both year on year and quarter on quarter, because overall lending should continue to expand well, especially large corporate loans to both domestic customers and Japanese customers investing in Thailand through the MUFG network, which supports interest income and feeds through to fee income. Meanwhile, the non-performing loan trend is expected to fall to 2.3-2.4% this year, as auto hire-purchase loans, housing loans and ASEAN loans improve in quality, which should also bring BAY's credit cost down. In addition, its valuation remains relatively laggard versus other banks, with BAY trading at a price-to-book value of 0.66 times while other banks trade at around 1 time, leaving upside, and there is a chance of an increase in dividend payments after BAY's management began placing greater emphasis on higher interim dividend payouts in the recent period, pointing to the possibility of a high dividend for the full-year 2026 results period.
Bank of Ayudhya PCLAnalyst expects BAY's Q3 2026 profit to grow YoY and QoQ, with improving NPLs, lower credit cost, cheap valuation and potential higher dividends.
Mitsubishi UFJ Financial Group, Inc.
