Bangkok: Siam Commercial Bank and its subsidiaries reported consolidated net profit of Baht 8.8 billion for 3Q21, a 90.0% yoy increase from higher operating profit and lower provisions. Pre-provision operating profit increased 12.6% yoy to Baht 21.1 billion driven by strong non-interest income growth and effective cost management. Net profit for the first nine months of 2021 was Baht 27.7 billion, up 24.6% yoy from the same period last year.

For the third quarter of 2021, net interest income declined 0.8% yoy to Baht 23.5 billion, 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 Baht 13.4 billion. 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 Baht 15.8 billion 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 Baht 10.0 billion in the third quarter and Baht 30.1 billion 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%.

Arthid Nanthawithaya, Chairman of the Executive Committee and CEO, commented:

“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 deliver 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.”


SCB – Financial Highlight