Bangkok--16 Oct--Siam Commercial Bank
Siam Commercial Bank reported third-quarter Net Profit of Baht 10.02 billion, a 20.0% year-on-year increase. This increase in Net Profit was attributed to the higher net interest income driven by robust loan growth of 20.2% year-on-year. Although the overall lending portfolio quality has continued to improve, the Bank set aside higher prudential provisions to allow for future uncertainties.
Commenting on the third quarter results, Dr. Vichit Suraphongchai, stated that “the continued strong financial results underscore the high level of core profitability and its sustainability. For three consecutive quarters, the Bank has delivered record high results for each quarter and this speaks to the effectiveness of the Bank’s strategies and its execution as well as the soundness of the post-flood economic recovery”.
Net Profit stands at the highest point in any quarter and this is mirrored by the record high quarterly Operating Profit— of Baht 15.3 billion for the quarter. Cumulative Net Profit for the first nine months was Baht 30.4 billion, representing an increase of 24.4% over the same period last year, (excluding the one-time investment revaluation gain in Q1, 2011).
The main driver of this high profitability has been the robust loans growth of 20.2% year-on-year, primarily in mortgage and automobile loans in the retail segment (20.7% and 39.6% respectively), as well as 25.7% growth in the SME segment. In both these segments the growth of loans attests to the success of the Bank in building market share. As a result of this loan growth, Net Interest Income increased to Baht 16.2 billion in the quarter, a 19.6% increase from the level recorded for the same period in 2011.
The overall loan portfolio profitability has continued to improve and Non Performing Loans ratio at the end of the quarter stood at 2.13%, down from 2.69%% at the end of 3Q11 and 2.61% at the end of 2011. Given the continued macro-economic headwinds at a global level, the Bank took the opportunity of setting aside an additional prudential provision, at the Bank level, of Baht 1 billion as a cushion for future uncertainties. As a result, the coverage ratio improved to 134.9% from 118.7% at the end of 3Q11 and 127.1% at the end of 2011.
Khun Kannikar Chalitaporn, President of the Bank, noted that the results “are the outcome of the Bank’s ability to successfully identify and grow specific customer segments through innovative products and services. These efforts are anchored on avowed ‘Customer First’ principle and driven by highly motivated and engaged employees. It is through this virtuous cycle of customers and employees that the Bank steadily delivers on its ’Bank of Choice’ vision to its many stakeholders”.
Kannikar Chalitaporn, President of the Bank
Dr. Vichit Suraphongchai