Siam Commercial Bank and its subsidiaries reported a consolidated net profit of Baht 35.6 billion, a 30.8% increase yoy. The increase was mainly due to higher operating profit and lower provisions. Pre-provision operating profit grew 7.9% yoy to Baht 86.8 billion, mainly as a result of non-interest income growth and effective cost control. For the fourth quarter of 2021, net profit was Baht 7.9 billion, up 58.7% yoy from the same period last year.
For 2021, net interest income fell 1.8% yoy to Baht 95.2 billion as net interest margin was compressed in the currently low interest rate environment and a focus on high quality loans.
Non-interest income increased 15.3% yoy to Baht 55.2 billion largely from mark-to-market gains on investment portfolios held by the Bank and its subsidiaries as well as strong growth momentum in wealth management and bancassurance businesses.
Expenses declined 1.2% yoy to Baht 63.5 billion owing primarily to the Bank's effective cost management. As a result, the cost-to-income ratio improved to 42.3% in 2021.
The Bank set aside total loan loss provisions of Baht 42.0 billion for 2021, which was 9.9% lower than in 2020, after elevated provisioning the year before.
Non-performing loan (NPL) ratio rose to 3.79% at the end of 2021 from 3.68% at the end of 2020, largely from qualitative loan downgrades of customers severely affected by the pandemic. Nonetheless, NPL coverage was maintained at a high level of 139.4% and the Bank's capital adequacy ratio remained strong at 18.7%.
Arthid Nanthawithaya, Chairman of the Executive Committee and CEO, commented:
"Consistent growth in non-interest income allowed the Bank's earnings growth to resume its positive trajectory in 2021. At the same time, the Bank has also made significant progress in working with customers in the relief program on comprehensive debt restructuring under the Bank of Thailand's framework to increase their chances of long-term survival. In addition, our digital platforms, such as SCB EASY mobile banking app and Robinhood food delivery services, have gained widespread popularity which helped expand the Bank's digital user base to over 20 million. Because the path of Thailand's economic recovery remains uncertain in 2022, the Bank will continue to pursue growth with prudence and stability as well as helping affected customers and every sector of the society to get through this crisis together."