Siam Commercial Bank and its subsidiaries reported consolidated net profit of Baht 8.8 billion for the second quarter of 2021, up 5.4% yoy. Pre-provision operating profit also increased 4.8% yoy to Baht 21.1 billion mainly due to higher non-interest income and reduced operating expenses. For the first half of 2021, net profit increased 7.3% yoy to Baht 18.9 billion.
For the second quarter of 2021, net interest income declined 1.3% yoy to Baht 23.5 billion given the current low interest rate environment and the Bank's shift toward high quality loans.
Non-interest income increased 4.0% yoy to Baht 13.0 billion largely from recurring non-interest income from bancassurance and wealth management businesses.
Expenses declined 4.7% yoy to Baht 15.4 billion due to lower staff related expenses. The Bank's cost-to-income ratio for the second quarter went down from last year to 42.2%.
Given the current economic uncertainty, the Bank set aside Baht 10.0 billion of provisions in the second quarter and Baht 20.0 billion in total for the first half.
Non-performing loan (NPL) ratio remained stable at 3.79% at the end of June 2021. This reflected the Bank's proactive NPL management. Nonetheless, the Bank still maintained NPL coverage ratio at a high level of 142.3% as well as a strong capital adequacy ratio at 17.9%.
Arthid Nanthawithaya, Chairman of the Executive Committee and CEO, commented:
"During the first half of the year, the Bank showed solid operating performance with sufficient financial strength to weather uncertainty from new COVID-19 outbreaks. Amid challenging business environment and continuing headwinds, the Bank has extended our relief programs to affected customers and provided additional support through various CSR initiatives, such as free food delivery on SCB Robinhood, which are rooted in our belief that "Community survival means the Bank's survival." Furthermore, the Bank is working on developing comprehensive debt restructuring plans to maximize the chance of customers' survival and sustainable recovery. At the same time, the Bank is laying the groundwork for post-pandemic business opportunities by building new businesses with high growth potential, offering the next generation digital banking experience, and broadening the scope of customer engagement beyond financial services."