Bangkok--21 Apr--SCB
SCB announced unaudited 2010 first quarter results, reporting first quarter 2010 net profit of Baht 6.4 billion. The increase in net profit was attributed to higher net interest and non-interest income, ability to control costs effectively and improving asset quality, resulting in lower provisions.
Commenting on the quarterly results, Dr. Vichit Suraphongchai, Chairman of the Bank’s Executive Committee, noted, “the results mirror the recovering economic conditions that characterized much of the first quarter”. However, he also noted “the political events of the past few weeks may well impair the speed of the recovery. In this context, the Bank stands prepared to cushion its customers from the inevitable economic impact resulting from escalating political tensions.”
Net Interest Income rose by 4.7% year-on-year. In the main, this improvement in performance was driven by the continued downward impact on funding costs. Non Interest Income rose by 18.5% year-on-year from increasing demand for its retail products and the relatively strong performance of its associated companies.
In term of expenses, the Bank was able to control costs effectively. Cost to income ratio of Q1/2010 was at 47.9% compared to 48.2% of Q1/2009. Finally, the Bank reported continued improvement in the quality of its loan portfolio, resulting in lower provisions at Baht 1.1 billion in the current quarter, compared to Baht 1.3 billion in the preceding quarter, and Baht 1.5 billion in Q1/2009.
The Bank’s President, Khun Kannikar Chalitaporn, commented: “While we are justifiably satisfied with the strong financial performance this quarter, we remain mindful that the recent political turmoil may create new vulnerabilities and challenges for some of our customers in the months ahead. The Bank will leverage its financial strength to alleviate any impact on its customer base from this unexpected turmoil”.
Siam Commercial Bank PCL is a leading universal bank in Thailand. It was established by Royal Charter in 1906 as the first Thai Bank and, as at March 30, 2010, had the highest market capitalization among Thai Financial Institutions (Baht 313 billion). It has the largest branch (990), exchange booth (112), and ATM (7,270) network in the country, attesting to its dominant position in the retail financial services marketplace. It has a diverse range of Corporate, SME, Private, and Retail customers nationwide, and has an asset size of Baht 1,311 Billion. Further information is available on the Bank's web site at www.scb.co.th.
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