Bank of Ayudhya PCL

Krungsri Credit Card has set a target of 1 billion baht in card spending in the pet category this year. Somwang Toraktrakul, Managing Director of Krungsri Ayudhya Card Company Limited, part of Bank of Ayudhya Public Company Limited, or BAY, said the number of pet lovers has grown, giving rise to a trend of raising pets as family members. This is reflected in card spending in the pet category in the first half of 2026, which grew 8% from the previous year, while average monthly spending per primary card account in the category rose 10% and the frequency of spending per primary card account per month increased 2%. The company has therefore partnered with more than 50 leading partners covering over 140 branches nationwide, ranging from pet hospitals and clinics, pet food shops, and hotels and resorts that board pets, to pet insurance. It is also offering benefits including discounts, cash back, and 0% installment plans. The company plans to keep pushing into the market through three approaches: building brand awareness through pet-related events and activities, building customer engagement through campaigns and community activities both offline and online, and expanding its partner network to cover a full range of pet-related products and services.

PTT, together with Bank of Ayudhya, announced the successful completion of its first sustainability-linked loan, or Sustainability Term Loan, worth 4.8 billion baht, with Krungsri acting as Sole Sustainability Finance Advisor and Sole Lender. This collaboration marks a significant step for PTT in integrating sustainability concepts into its business strategy. The loan facility will support key sustainability projects of PTT, such as forest restoration and expansion, as well as support for the development of science and technology education through Kamnoetvidya Science Academy, or KVIS, and the Vidyasirimedhi Institute of Science and Technology, or VISTEC. The transaction coincides with PTT's 48th anniversary and reflects the close and long-standing relationship between PTT and Krungsri, as well as Krungsri's commitment to being a leading regional bank for sustainability.

Fitch Ratings has revised Thailand's credit rating outlook from Negative to Stable while affirming the rating at BBB+, an investment grade level. As a result, bank stocks rose across the board at 3:00 p.m., led by KBANK up 2.77% to 260.00 baht on trading value of 3.83 billion baht, followed by BAY up 2.61% to 39.25 baht, SCB up 2.30% to 156.00 baht, CREDIT up 1.32% to 23.00 baht, BBL up 1.29% to 196.00 baht, KTB up 1.11% to 45.50 baht, and TISCO up 0.39% to 128.00 baht. TISCO Securities noted four main reasons behind the outlook upgrade: reduced political risk following the election and the formation of a stable government, continuity of economic policy, an improving public debt outlook expected to hold below 63% of GDP in fiscal year 2028, better-than-expected GDP growth driven by investment in AI and data centers, and a strong external position supported by expectations of a return to a current account surplus of 1.5% next year. Based on a study of market movements after Moody's last upgraded Thailand's outlook on April 21 this year, bank stocks delivered positive returns and outperformed the SET across all timeframes, with SETBANK at +1.16%, +1.22%, +4.56%, and +28.56% versus the SET at -0.11%, +0.56%, +3.43%, and +11.55% respectively. The recommended strategic stocks are KBANK with a base target of 290 baht, KTB at 50 baht, and TTB at 3.3 baht. Meanwhile, the yield on 10-year Thai government bonds fell from 2.38% to 2.26%, a decline of 12 basis points, which is positive for interest-rate-sensitive stocks. Preferred picks are MTC at 55 baht, TIDLOR at 25 baht, and power plant stocks such as GULF at 82 baht and EGCO at 144 baht.

Kasikorn Securities, or KS, said in a research note that ESG is entering an era in which it genuinely affects financial outcomes, and unveiled 10 stocks set to benefit from the ESG transition. The Stock Exchange of Thailand is preparing to move from SET ESG Ratings to the FTSE Russell ESG Scores framework, with listed companies due to learn their own scores in 2026 and public disclosure beginning in 2027. Preliminary statistics from the 2025 FTSE Russell ESG Scores assessment show that 222 Thai listed companies averaged 3.6 out of 5, placing them at a Good practice level, with the utilities, healthcare, and oil and gas sectors scoring most strongly. KS said ESG development is reaching a regulatory level that will affect profits and ROIC through a carbon pricing mechanism with a pilot price of 200 baht per tonne of carbon equivalent, a planned emissions trading system trial in 2029-2030, the EU CBAM measure, and the IFRS S1/S2 standards and Thailand Taxonomy. A study of SET100 stocks found that high ESG-rated shares do not always trade at more expensive PER or PBV multiples or post higher EPS growth, but that good ESG enhances investability through liquidity and the shareholding of foreign and institutional investors. The case of DELTA, which was removed from the SETESG index, reflects how money from ESG-linked funds affects short-term price volatility. The 10 standout stocks span five themes: renewable energy business expansion, GULF, BCPG and CKP; green industrial infrastructure, WHA and AMATA; ESG data services and carbon management, DITTO and BBIK; sustainable finance, BAY and TTB; and the circular economy, SCGP.

Kyndryl announced a five-year extension of its long-term partnership with Bank of Ayudhya, or Krungsri, to upgrade the bank's IT systems and Core Banking platform. Under the agreement, Kyndryl will bring its Kyndryl Bridge platform, automation, AI-driven operations, Mainframe-as-a-Service capabilities, and application modernization services to Krungsri's IT data center environment, covering the infrastructure that supports more than 4,800 ATMs nationwide. Kenichi Yamato, Managing Director and Chief Executive Officer of Bank of Ayudhya, said the banking industry is being transformed by technology, customer expectations, regulation, and new financial models, making robust, flexible, and stable IT infrastructure essential. Kittipong Asawapichayon, Managing Director of Kyndryl Thailand, said the partnership will bring the Kyndryl Agentic AI Framework to accelerate system modernization, spanning application and infrastructure analysis, the creation of workflow automation, and mainframe and application modernization projects, all while keeping humans in the loop.

At The Bangkok Business Summit 2026 seminar, four top bank executives outlined the next steps for Thailand's financial system, pointing out that the transition to the digital era must focus on building digital trust to attract investment and drive the economy. Dr. Pitti Tantaksem, Chief Executive Officer of TMBThanachart Bank, said Thailand has succeeded in shifting payments to digital, with PromptPay transactions averaging over 100 million per day, but faces fraud risks. Therefore, a decentralized data infrastructure is needed to reduce the cost of trust, which currently accounts for up to 50% of revenue. Meanwhile, Mr. Siam Prasitsirikul from Bank of Ayudhya discussed the PromptBiz platform, which helps SMEs access credit faster and is expected to boost GDP growth by an additional 1% to 2% per year. Dr. Kobkarn Pootrakul, Executive Vice President of Bangkok Bank, revealed the direction and next steps for driving the market and financial system, noting that the share of foreign direct investment (FDI) flowing into ASEAN has risen from 4% a decade ago to nearly 20% today. Meanwhile, Thailand's investment promotion applications to the Board of Investment (BOI) surged to 2 trillion baht last year and are expected to reach 2.5 to 2.8 trillion baht this year. Mr. Thanyapong Thammavaranukup from Ascend Money spoke about the growth of virtual banks, with the Bank of Thailand opening applications for licenses for the first time in over 20 years, granting licenses to three entities, which face the challenge of building consumer trust without physical branches.

Seven banks and financial institutions have announced dividend payments for September 2026, with KKP paying the highest at 3.25 baht per share. Meanwhile, TISCO, SCBX, BBL, and KBANK will pay 2.00 baht per share, TTB will pay 0.081 baht, and BAY will pay 0.60 baht. The ex-dividend (XD) dates are set between September 7-9, with dividend payments scheduled between September 21-25, 2026.

Phillip Securities (Thailand) stated in its analysis that the dividend payout ratio of banking stocks that announced interim dividends for the first half of the year increased from the previous year. BAY increased to 26.1% from 18.6%, KKP increased to 70.4% from 51.4%, and TTB increased to 74% from 63.7%, while TCAP decreased to 33% from 36.1%. The research department expects that BAY and TTB are the most likely to increase their payout ratios this year. As for KKP, although its first-half payout was higher than the previous year, its high payout of 81.6% last year may limit further increases. TCAP, whose payout in 2025 was below the group average, still has room to increase. Compared with yesterday's closing price, KKP, which paid an interim dividend of 3.25 baht per share, has the highest dividend yield in the group at 2.8%, followed by TTB, which paid 0.081 baht per share, representing 2.7%, while BBL, which paid 2 baht per share, has the lowest yield at 1%. The research department maintains a neutral rating on the banking group. Although NPLs may increase, loans are still able to grow, and stable interest rates have caused interest rate spreads to begin to improve. It selects KBANK as the top pick. Although its payout is not the highest, it is expected to pay the highest dividend in 2026 at 15 baht per share, representing a dividend yield of 6%, and may also pay special dividends this year. Therefore, it recommends accumulating shares with a fundamental price of 261 baht.

The Public Debt Management Office (PDMO) is preparing to hold a promotional event for the issuance of the second Sustainability-Linked Bond (SLB) of the Thai government to domestic investors on August 31, 2026, and will travel to promote the bond to foreign investors in Hong Kong and Singapore between September 1-4, 2026. This bond builds on the first issuance and focuses on two main dimensions: climate change and nature conservation. It sets Key Performance Indicators (KPIs) and Sustainability Performance Targets (SPTs) in two areas: net greenhouse gas emissions not exceeding 152 million tonnes of carbon dioxide equivalent by 2035, and increasing protected areas and Other Effective Area-based Conservation Measures (OECMs) by at least 30% by 2030. The interest rate will increase or decrease by 2.5 basis points depending on the achievement of each target. The bond, designated SLB425A, has a 15-year maturity and an issue size of approximately 15-30 billion baht. There are four underwriters: Bangkok Bank, Bank of Ayudhya, Siam Commercial Bank, and Standard Chartered Bank (Thai). A bookbuilding survey will be conducted on September 10, and the bond is scheduled to be issued on September 17, 2026.

Commercial banks are gradually announcing interim dividend payments after reporting their first-half 2026 results. Kiatnakin Phatra Bank (KKP) pays the highest at 3.25 baht per share, while Kasikornbank (KBANK), SCB X (SCB), and TISCO Financial Group (TISCO) pay 2.00 baht per share. Most have set the XD date in early September. Bank of Ayudhya (BAY) pays 0.60 baht per share, TMBThanachart Bank (TTB) pays 0.081 baht per share, CIMB Thai Bank (CIMBT) pays 0.0385 baht per share, and LH Financial Group (LHFG) pays 0.02 baht per share. Meanwhile, KTB, CREDIT, and TCAP have not yet announced interim dividends for the first half. KTB is still awaiting a board meeting, while CREDIT and TCAP have already paid dividends from their 2025 performance.

Commercial bank stocks remain a flagship group supported by positive economic factors. In September 2026, eight banks are set to mark XD for dividend payments to shareholders. On September 7, three banks will go XD: CIMBT pays 0.0385 baht per share, TISCO pays 2.00 baht per share, and TTB pays 0.081 baht per share. On September 8, SCB pays 2.00 baht per share. On September 9, four banks will go XD: BAY pays 0.60 baht per share, KKP pays 3.25 baht per share, BBL pays 2.00 baht per share, and KBANK pays 2.00 baht per share. Meanwhile, analysts from PST recommend buying BAY with a fundamental price of 48 baht and expect the payout ratio to increase from 30% to 50%, which would raise the yield from 3.3% to 5.5%. KSS notes that KKP's dividend of 3.25 baht per share represents a yield of 2.8%, higher than the research department's forecast of 1.75 baht per share.

American Express has announced partnerships with Kasikornbank (KBank), Krungsri (Bank of Ayudhya), and Siam Commercial Bank (SCB) to expand its card acceptance network in Thailand. The goal is to enable both foreign and Thai cardholders to use their cards at a wider range of merchants, especially in major tourist destinations and everyday spending categories. This collaboration is part of AMEX's global strategy, which currently includes over 170 million merchant locations worldwide and 152.8 million cards in force as of the end of 2025. Annual spending on AMEX cards is approximately three times higher than other cards globally. However, a key challenge is the merchant discount rate (MDR), which ranges from 3.00% to 3.65% per transaction, significantly higher than the 0.55% charged on typical Thai credit and debit cards, potentially making smaller merchants hesitant to participate.

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.