Bangkok--19 Oct--Siam Commercial Bank
Siam Commercial Bank (SCB) announced Q3/2011 results with a net profit of 8.4 billion Baht, a rise of 2.7% (qoq). This strong performance was driven by the following key factors: net interest income rose 7.8% (qoq), non-interest income rose 20.1% (qoq) while NPLs at the end of 3Q/2011 stood unchanged at 2.69%.
Reflecting on the results as well as the severe floods, Dr. Vichit Suraphongchai, Chairman of the Bank's Executive Committee, noted, “Our third quarter results highlight another good quarter. However, our current attention is on alleviating the tremendous hardship that the floods have inflicted, and indeed continue to inflict, on our customers across all segments and others in the communities that lie within the affected areas. Given the strong fundamentals and healthy financial position of the Bank, we are ready to assist these customers and communities in mitigating the hardships they face. Our Board has approved in principle increasing our assistance budget to 20 billion Baht and is ready to increase it further as necessary. We believe that through our collective efforts we will be able to overcome this crisis facing our country.”
The strong 3Q/2011 performance is the result of both higher net interest income and higher non-net interest income. Asset quality continues to remain stable.
The net profit is driven by following key factors:
Net interest income (NII) rose by 7.8% (qoq) to 13.53 billion Baht (from 12.55 billion Baht in Q2/2011), mainly as a result of robust lending growth (balanced across all segments — SME, corporate , and car loans) and interest from investments.
Non-interest income (non-NII) rose by 20.1% (qoq), as a result of increasing insurance income growth, treasury income, and fee based income.
Asset quality was stable, with NPLs at the end of Q3/2011 standing at 2.69%. Concurrently, The NPL coverage ratio increased from 114.5% at end of 2Q/2011 to 118.7% at end of 3Q/2011
Siam Commercial Bank PCL is a leading universal bank in Thailand. It was established by Royal Charter in 1906 as the first Thai Bank and, as at September 30, 2011, had the highest market capitalization among Thai Financial Institutions (Baht 360 billion). It has the largest branch (1,058), exchange booth (112), and ATM (8,363) network in the country, attesting to its dominant position in the retail financial services marketplace. It has a diverse range of Corporate, SME, Private, and Retail customers nationwide, and has an asset size of Baht 1,783 Billion. Further information is available on the Bank's web site at www.scb.co.th.
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