Siam Commercial Bank reported Baht 10.5 billion net profit for the third quarter of 2018 and Baht 33.0 billion for the first nine months of 2018

Stocks News Friday October 19, 2018 16:51 —PRESS RELEASE LOCAL

Bangkok--19 Oct--Siam Commercial Bank Siam Commercial Bank and its subsidiaries announced total operating income of Baht 104.4 billion, a 2.5% yoy increase, for the first nine months of 2018. This positive income growth was achieved despite the digital transaction fee waiver. Operating expenses remained elevated from new technology investments and customer acquisition initiatives under the Transformation Program. In the third quarter of 2018, the Bank registered a net profit of Baht 10.5 billion (based on unreviewed consolidated financial statements), up 3.7% yoy. For the first nine months of 2018, net profit stood at Baht 33.0 billion, down by 2.9% on a yoy basis. Non-performing loans (NPLs) stood at 2.80% at the end of September 2018, a slight decrease from 2.83% at the end of December 2017. In the third quarter of 2018, the Bank set aside Baht 5.1 billion of provision which further strengthened its NPL coverage ratio to 142.5%. Moreover, the Bank's capital adequacy ratio remained strong at 17.6%. Performance Highlights for the Third Quarter of 2018 Total operating income increased 1.1% qoq and 0.1% yoy to Baht 34.7 billion in the third quarter of 2018. Net interest income increased 4.8% yoy to Baht 24.4 billion. This increase was driven by strong loan growth of 5.5% yoy and improved net interest margin from efficient deposit cost management. Non-interest income fell 9.5% yoy to Baht 10.3 billion mainly from the digital transaction fee waiver and a decline in net insurance premium. The weaker fee income was partially offset by higher gain on investments as well as higher net trading & FX income. Operating expenses were elevated during the high investment cycle to support the Transformation Program. Total operating expenses in the third quarter of 2018 increased by 13.6% yoy. This increase was driven by the implementation of the Transformation projects and investments in new technology platforms and new customer acquistions. SCB Transformation Program The Bank made significant progress on the execution of the Transformation Program which has begun to pay dividends in the form of an expanded customer base who are more digitally-engaged. Since the launch of the new mobile banking platform, "SCB EASY," the Bank has gained positive momentum on digital acquisition with its digital customers reaching more than 7.9 million users in the third quarter of 2018, compared to 5.5 million users at the end of 2017. Also, the number of merchants with QR-code based payment has just crossed the one million milestone in less than a year. Amidst challenges from digital disruption and organizational transformation, the Bank has been recognized for its success in environmental, social and governance initiatives by becoming a member of the Dow Jones Sustainability Indices 2018 (DJSI 2018) in the Financial category of the World Index and Emerging Markets Index groups. This accomplishment clearly reflects the Bank's commitment to corporate sustainability practices and to being the 'Most Admired Bank' for all its stakeholders. Arthid Nanthawithaya, President and Chief Executive Officer, stated: "As more customers gravitate toward digital banking, SCB's Transformation Program and our investment in new capabilities will focus on building the best possible experience and delivering compelling customer value proposition by offering 'Easier, Faster and Cheaper' services. The Bank has successfully launched the next-generation digital platforms for both consumer and business customers, namely SCB EASY and SCB Business Anywhere. These efforts, together with customer-centric initiatives under the Transformation Program, have already paid off as reflected in the Bank's continuously expanded digital customer base and deepened customer engagement through digital channels. Ultimately, the Transformation Program has positioned the Bank to stay relevant to customers and thrive in a constantly evolving banking sector." Siam Commercial Bank PCL is one of Thailand's leading universal banks. Established by Royal Charter in 1906 as the first Thai bank, SCB ranks number 2 in market capitalization among Thai financial institutions as of the end of September 2018 (Baht 506 billion). Its network of branches and service points offers nationwide coverage with 1,028 branches. (If investment centers, business centers, and service centers were to be included, the total number of branches would be 1,045). In addition, the Bank has 72 foreign exchange kiosks, and 9,564 ATM machines to provide services that meet the demands of all customer groups, including corporate, SME and retail customers. The Bank's total assets are Baht 3,097 billion. More information is available on the Bank's website at www.scb.co.th.

เว็บไซต์นี้มีการใช้งานคุกกี้ ศึกษารายละเอียดเพิ่มเติมได้ที่ นโยบายความเป็นส่วนตัว และ ข้อตกลงการใช้บริการ รับทราบ