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Driven by strong operating results, TMBThanachart will seek shareholders’ approval for its second dividend payment. Overall, total dividend per share paid in 2022 is 0.073 baht, a 92% increase from 2021 and equivalent to a 50% dividend payout ratio, higher than a 35% payout in the previous year.
Bangkok, 22 February 2023 -- On 21 February 2023, TMBThanachart Bank Public Company Limited or TMBThanachart notified the Stock Exchange of Thailand that its Board of Director’s Meeting has passed a resolution to further propose a second dividend payment at 0.053 baht per share from the second haft of 2022 operating results to the Annual General Meeting of Shareholders on 5 April 2023 for approval. The ex-dividend (XD) date is 12 April 2023, and the payment date (cash dividend) is 3 May 2023.
Mr.Piti Tantakasem, CEO of TMBThanachart (ttb), mentioned “The higher dividend payment reflects the improvement in operating performance and financial position after merger. It also shows the Bank’s commitment to deliver returns to shareholders.
Previously in September 2022, TMBThanachart has paid interim dividend at 0.02 baht per share and will seek approval for the second payment at 0.053 baht per share. Overall, it would be a total dividend at 0.073 baht per share paid in 2022 or a total of 7.1 billion baht in value, an increase of 92% from 2021 and one of the highest rates in industry. The total dividend represents a dividend payout ratio at 50% which increases from a 35% payout in the previous year, and it is equivalent to a dividend yield of approximately 5.2% given the current share price.
In 2022, after the BoT removed a limit on banks' dividend payouts, TMBThanachart proposed its Board of Directors for the approval to pay interim dividend. Previously, TMBThanachart would normally pay dividend once a year. However, as the Bank’s financial position has strengthened, driven by synergy realization that could be captured as planned, together with successful operating results which allow the Bank to withstand economic conditions and to deliver better performance in net profit, cost efficiency, and asset quality. All these factors together with robust capital levels led to such a dividend policy adjustment and higher dividend payment.
In addition, in 2022, the Bank has issued and allocated warrants, TTB-W1, to its shareholders at no cost. It is beneficial to shareholders when considering either the exercise price which is currently lower than the market price or in terms of liquidity as it could be traded in the secondary market.
Above-mentioned initiatives reflect TMBThanachart’s efforts to explore ways to pass quality returns back to shareholders. In 2023, the Bank would continue to focus on prudent business direction and digital transformation in order to improve competitive advantage generating business growth and to deliver quality and sustainable returns to the Bank’s shareholders.”
For 2022 operating performance, TMBThanachart reported net profit of 14,195 million baht, an increase of 36% from 2021. Asset quality was well-managed with lower NPL ratio at 2.73%. Capital adequacy has been maintained at robust level, with CAR at 20.0% and Tier 1 at 16.3%.