Bangkok--19 Jul--SCB Bank SCB posted a robust preliminary consolidated net profit of Bt 4,311 mn for the 2ndquarter of 2007; Bt 611 mn or 16.5% up from the first quarter. The key profit drivers were interest income, fee income, and continuing strong growth in the Group`s services income. On a year-on-year comparison, net profit rose 3.3% or Bt139 mn. Net profit for the first half of 2007 totalled Bt 8,010 mn, which was 4.6% or Bt 384 mn below the same period last year. This was due to higher corporate income tax payment and higher provisions necessitated by the current economic uncertainties. Khun Kanikar Chalitaporn, SCB President, stated that: "One of the key profit contributors to this half year performance of SCB was loan growth. The 5.4% increase was higher than the industry average. Lending to SME and hire purchase segments was notable. Net interest margin moved up to 3.6% on the back of credit extension combined with effective management of deposit costs. Another key driver for this first half year was the continuous growth of our mutual fund business, as depositors responsed to lower interest rates by shifting their money into securities of higher returns. SCB, therefore, consolidated its leadership in the mutual fund business with 22% of market share. NPL remained at a controllable level. As of 30 June 2007, NPL went down to 3.9% from 5.5% at the end of June 2006. To minimize NPL in the future, the bank will remain cautious, while continuing to response to customers' needs." Dr. Vichit Surapongchai, Chairman of the Executive Committee, commented: "SCB Group's performance confirms further that our strategy focusing on quality growth for the whole group is the right direction. The bank and our subsidiaries will continue this strategy through excellent products and services for the highest level of customer satisfaction."