Bangkok--19 Apr--SCB
Continuing the three year string of record quarterly earnings, Siam Commercial Bank announced its unaudited first quarter 2013 net profit of Baht 13.1 billion, a 26.8% increase from the first quarter of the previous year. The very high growth in net profit was the result of, among others, higher net interest income arising from continued robust loan growth, higher net fees, and higher dividend income. Although the loan quality remained solid with the NPL ratio at a post-crisis low of 2.06%, the Bank prudently set aside higher provisions in the quarter, as a counter-cyclical buffer against future uncertainties.
Commenting on these results, Dr. Vichit Suraphongchai, Chairman of the SCB Executive Committee noted that “SCB’s trend of record quarterly profits over the past three years, attests to the underlying strength of the Thai economy and the Bank’s strong execution capabilities. Also, this earnings trend confirms the sustainability of SCB’s outperformance in a very competitive market and its ability to compete across all segments and product lines, in addition to its dominant retail franchise. Finally, these results speak to the effectiveness of the past and current transformational efforts and the accelerated build-up of new capabilities; efforts that have now positioned SCB as the ‘Bank of Choice’ in the Thai marketplace”.
Net interest income grew 21.6% to Baht 17.2 billion on the back of an 18.2% loans growth over the same period last year. While the loan growth was broad based, the Bank continued to record significant increases in the SME segment (up 24.2%), as well as in mortgage loans (up 22.4%) and auto loans (up 40.5% yoy).
Non-interest income increased a solid 21.7% from a year ago to Baht 12.3 billion. This was based upon a large and exceptional return from an equity investment by the Bank, and continuing growth in the net fees and net insurance premium income.
Despite the strong loan growth, asset quality remains sound and the NPL ratio is at a post-Asian crisis low of 2.06%, marginally better than the 2.13% level reported last year. Nevertheless, the Bank, as previously announced, increased its normalized provisioning level to build counter-cyclical buffers in anticipation of future contingencies.
The President of the SCB, Khun Kannikar Chalitaporn, noted that “the record financial performance of the Bank in the first quarter reflects only one dimension of our achievement. What is not as evident is the substantial build-up of new capabilities across the group and it is this talent and competency that will sustain and nurture the success of the Bank in the years ahead.
Siam Commercial Bank PCL is one of Thailand’s leading universal banks. Established by Royal Charter in 1906 as the first Thai bank, it has the highest market capitalization among Thai financial institutions as of March 31, 2013 (Baht 611.9 billion). It offers the nation’s largest network of branches (1,152), exchange booths (108), and ATMs (8,779), attesting to its dominant position in the retail financial services marketplace. Its clientele includes a diverse range of corporate, SME, private, and retail customers nationwide. The Bank’s total asset size is Baht 2,364.5 billion as of March 31, 2013. Further information is available on the Bank's website, at www.scb.co.th.
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