Bangkok--Feb 25--Siam Commercial Bank
The Siam Commercial Bank PCL announces the audited operation results for year ended 2004. Net profit was a record high at Baht 18,489 million, a 48.4% increase from Baht 12,460 million a year earlier. The audited operation results remained the same as the preliminary results released on January 19, 2005. However, the Bank has made additional write-off at the amount of Baht 8,422 million, resulting in Baht 555,450 million loans at the end of 2004, up 9.7% year-on-year. Non-performing loans declined to Baht 73,947 million or 13.1% of total loans.
Dr. Chirayu Isarangkun Na Ayuthaya, Chairman of the Board of Directors, said after the board meeting on February 24, 2005:
"In view of Baht 18,489 million net profit the Bank has made in 2004 and the current high level of capital funds which reflects financial stability, the Board of Directors will propose the Shareholders’ Meeting in April to pay higher dividend payment from previous year of Baht 2.0 per share, or a dividend payout ratio of 36% which is equal to last year’s ratio. The Board believes that the shareholders will be satisfied with this dividend payment rate."
The Siam Commercial Bank is the first private commercial bank to pay dividend after the economic crisis. Dividend payment in 2004 was Baht 1.40 per share from 2003 net profit of Baht 12,460 million. This year, the Share Registration Book will be closed for Shareholders’ Meeting participation and receipt of dividend on March 16, 2005 and April 20, 2005, respectively.
Khunying Jada Wattanasiritham, President and CEO, commented that:
"The Audited results remained unchanged from the preliminary results. However, the Bank has made additional write-off at the amount of Baht 8,422 million and at the same time classified certain loans expected to be restructured in 2005 into NPL so as to maintain tax privilege. NPL dropped to Baht 73,947 million or 13.1% of total loans, as a result. Loan loss coverage ratio remained at a high level of 83%."
The Royal Decree No. 433, dated January 26, 2005, the Notification of the Director-General of the Revenue Department and the Order of the Revenue Department, dated February 4, 2005, extend tax exemption to debtors and banks for transactions arising from debt restructuring during 2005-2006, provided that such debtors must be classified as NPLs prior to January 1, 2005.
Major items in the audited consolidated financial statements in 2004 are as follows:
Consolidated net profit for 2004 was Baht 18,489 million. Income and expenses showed similar trend as in the Bank-only results. Net interest and dividend income increased by Baht 1,687 million or 8.6% and non-interest income rose by Baht 10,386 million or 90.8%, largely due to investment gains and fee and service income. Non-interest expenses surged by Baht 3,241 million or 20.5% on account of higher personnel expenses, premises and equipment expenses and fee and service expenses.
As at December 31, 2004, total consolidated assets stood at Baht 764,894 million (December 2003: Baht 746,838 million), while consolidated liabilities were Baht 681,795 million (December 2003: Baht 670,180 million). Total shareholders’ equity was Baht 83,099 million (December 2003: Baht 76,659 million). End.