BAY set to raise dividend payout ratio, broker sees 2.3 baht per share in 2026, yield 5.6%

Share2Trade·4 Aug 2026·Read original

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Summary · why it matters

Bank of Ayudhya, or BAY, is preparing to consider raising its dividend payout ratio. Analysts at InnovestX Securities expect clarity on the interim dividend announcement this August. The research team has raised its dividend payout ratio assumption from 45% to 50% for 2026, compared with 30% in 2025. This lifts the dividend per share forecast from 1.3 baht in 2025 to 2.3 baht in 2026, representing a dividend yield of 5.6%. The strong Common Equity Tier 1 ratio of 19.1% as of the second quarter of 2026 still leaves room for further upside to the dividend per share estimate. On loan growth, momentum is expected to accelerate in the second half of 2026, driven by a robust pipeline of large corporate loans, ASEAN business expansion, and the acquisition of a 29 billion baht hire-purchase loan portfolio from CIMBT in the fourth quarter of 2026. The bank maintains its 2026 loan growth target at 2% to 4%. Meanwhile, net interest margin, or NIM, is projected to rise to 4.5% in 2026, supported by a full-year contribution from the TIDLOR consolidation, despite pressure from intensifying deposit competition and the deconsolidation of Home Credit Indonesia. On asset quality, the NPL ratio fell to 3.5% in the second quarter of 2026, but SME and mortgage loans still carry elevated NPL ratios of 8.5% and 7.5%, respectively, and remain a concern. Credit cost in the first half of 2026 stood at 2.36%, above the full-year target of 2% to 2.3%. The research team maintains its 2026 profit growth forecast of 7% and keeps a NEUTRAL recommendation, while raising the target price from 44 baht to 45 baht.

Bank of Ayudhya PCL ▲

Ngern Tid Lor Public Company Limited ▲