Bangkok--18 Oct--Siam Commercial Bank
Siam Commercial Bank and its subsidiaries announced net profit for 3Q16 (based on unreviewed consolidated financial statements) of Baht 11,533 million, an increase of 27.9% from the same quarter last year. The increase in net profit was a result of higher net interest income along with higher net fee and service income. Meanwhile, gain on investments and provisions declined significantly due to the fact that in 3Q15 additional provisions were booked for large corporate customers and large gains from the sale of equity investment were realized. For the first nine months of 2016 net profit stood at Baht 34,897 million, a 1.4% decrease from the first nine months of 2015.
Net interest income rose to Baht 22,214 million, an increase of 10.7% from the same period last year. The increase in net interest income was mainly driven by the Bank's proactive strategy in managing its cost of deposits as well as loan growth of 5.3% over the past year.
Non-interest income decreased 37.6% from the third quarter of last year, primarily a result of large gains from the sale of equity investment booked in 3Q15. Excluding these large gains on investment in 3Q15, non-interest income would have increased by 4.3% YOY, mainly driven by higher net fee and service income from corporate finance as well as higher net trading and FX income.
The non-performing loan ratio this quarter stood at 2.85%, a slight decrease from 2.89% at the end of 2015 but an increase from 2.77% of the previous quarter due to a slow economic recovery. Loan loss provisions for this quarter amounted to Baht 7,012 million, driving the coverage ratio up to 128.9% from 109.8% in 2015 but slightly down from 130.0% in 2Q15.
Arthid Nanthawithaya, President and Chief Executive Officer, noted that, "The Bank reported satisfactory financial results in the third quarter under the prevailing economic circumstances. The Bank is focused on taking care of customers and remained prudent in conducting business. In addition, the Bank will continue to keep the coverage ratio at around the current high level."