SCB’s 3Q21 Profit Soars 90% to THB8.8Bn on Higher Operating Profit and Lower Provisions

The Siam Commercial Bank Public Company Limited (SCB) has announced its 3Q21 consolidated financial statement through the Stock Exchange of Thailand as follows;

SCB reported a net profit of 8,817 million baht in 3Q21, increased 89.98% from a net profit of 4,641 million baht in 3Q0. A significant increase in the quarter was mainly due to SCB’s higher operating profit and lower provisions.

For the third quarter of 2021, net interest income declined 0.8% YoY to 23.5 billion baht, reflecting the pressure on net interest margin in the current low interest rate environment and weak economic growth.

Non-interest income increased 24.3% YoY to 13.4 billion baht. Strong income growth in bancassurance and wealth management businesses, a rebound in trade activities, and higher gain on sale of assets had contributed to this increase.

Expenses increased slightly 0.4% YoY to 15.8 billion baht as the bank continued its strict cost control measures. The Bank’s cost-to-income ratio for the third quarter was 42.8%. The bank set provisions at 10.0 billion baht in the third quarter and 30.1 billion baht in total for the first nine months.

Non-performing loan (NPL) ratio went up slightly to 3.89% at the end of September 2021 from 3.79% at the end of June 2021. The bank maintained a high NPL coverage ratio at 137.6% as well as a strong capital adequacy ratio at 18.4%.

 

“The Bank’s steady growth despite the widespread impact of the COVID-19 pandemic reflected both our financial strength and our adaptability in this rapidly changing operating environment. We continue to focus on our critical role in helping our customers and society through our relief programs. In the third quarter, the Bank launched a comprehensive debt restructuring program following the Bank of Thailand’s framework to help customers recover from this crisis in a sustainable fashion. Moreover, the Bank also channeled additional assistance to consumers and SMEs through its food delivery platform, Robinhood. The Bank saw over 1.9 million of new digital users in the recent quarter, most of which were from Robinhood’s expanded user base. The Bank is committed to enhancing and deepening digital engagement and customer experience across multiple platforms and beyond banking services,” said Arthid Nanthawithaya, Chairman of the Executive Committee and CEO.