TMBThanachart Bank (ttb) has officially refuted speculation regarding a possible merger with Krungthai Bank (KTB), emphasizing that its two major shareholders are private entities holding a combined interest exceeding that of government stakeholders.
KTB has also addressed these rumors, informing the Stock Exchange of Thailand that the reports of a merger are unfounded. The bank’s board has neither initiated any merger discussions nor tasked management with exploring such a partnership.
Piti Tantakasem, the CEO of ttb, clarified that the bank’s structure, where Thanachart Capital and ING Bank hold over 20% each, makes any merger infeasible.
Thanachart Capital stands as the largest shareholder with a 24.42% stake in ttb, followed by ING Bank N.V. at 22.78%. The Finance Ministry, holding an 11.67% interest, is the next largest shareholder.
Despite local media suggesting that the government’s significant shareholding might pave the way for a merger, Piti urged investors to verify information meticulously, as misleading news could impact stock prices and benefit specific parties.
To alleviate concerns, Piti circulated an internal memo to employees, reiterating that merger talks are nonexistent and ttb is not pursuing a merger with any institution.
The board has not contemplated or authorized any steps toward a merger, which is not included in ttb’s five-year strategic plan, Piti confirmed.
“Our primary mission at ttb is to ‘Make Real Change’ by improving the financial well-being of over 10 million customers through our Ecosystem Play growth strategy,” he stated in the memo.
The bank is actively engaged in a comprehensive transformation to enhance its operational strength, competitiveness, and the overall financial experience for clients.
This transformation aims to foster sustainable growth for ttb’s customers, partners, and stakeholders, reinforcing the necessity for collaboration among employees to meet these objectives, Piti noted.
Both KTB and ttb are recognized as Domestic Systemically Important Banks (D-SIBs) under Bank of Thailand regulations, which also classify four other institutions: Bangkok Bank, Kasikornbank, Siam Commercial Bank, and Bank of Ayudhya.
In the stock market, ttb shares saw a rise of up to 3.65%, reaching 2.2 baht in early trading before settling at 1.95 baht by midday, marking a 1.56% increase. KTB shares ended the session at 23.60 baht, up 0.43% from a morning high of 24 baht.
Kanjana Chockpisansin, a financial sector research head, remarked that while commercial banks maintain robust operational results, current economic conditions and the need to restructure debts present significant hurdles.
She noted that the uneven economic recovery complicates revenue growth for banks, alongside mounting pressure to cut costs.
Despite strong liquidity coverage ratios and solid reserves, banks face challenges related to declining asset quality, with non-performing loans (NPLs) remaining elevated.
K-Research forecasts the overall NPL ratio to range from 2.65% to 2.85% of total outstanding loans this year, compared to 2.7% at the close of 2024.
Additionally, Chalie Kueyen, a bank analyst, affirmed that both KTB and ttb continue to demonstrate solid profitability.
“Operational scale is not always essential; agility can be just as crucial,” she asserted.
