The Siam Commercial Bank Public Company Limited (SET: SCBB) has announced its 1Q22 consolidated financial statement through the Stock Exchange of Thailand as follows;
|Net Profit (Loss)
|Earning Per Share
SCBB reported a net profit of 10,192 million baht in 1Q22, increased slightly by 1.04% from a net profit of 10,087 million baht in 1Q21, due to net interest income growth and lower provision. Pre-provision operating profit fell 4.1% YoY to 21.7 billion baht with a decline in non-interest income as a result of rising business and investment uncertainty as well as higher expenses from a low base level during lockdown measures last year.
Net interest income increased 5.9% YoY to 24.7 billion baht. The primary reasons for this increase were the bank’s effective funding cost management and higher loan yields despite limited loan growth.
Non-interest income fell 9.9% YoY to 13.0 billion baht largely from lower gains on the investment and a slowdown in the wealth management business under the prevailing riskoff sentiments.
Expenses increased 5.9% YoY to 16.0 billion baht driven by an increase in overall business activities. Nevertheless, the bank’s cost-to-income ratio for the first quarter remained at 42.4%.
Provisions in the first quarter were set at 8.8 billion baht, down 12.6% YoY from the elevated levels in the past two years.
Non-performing loan (NPL) ratio declined to 3.70% at the end of March 2022 from 3.79% at the end of December 2021. The bank also maintained a high NPL coverage ratio at 143.9% as well as a strong capital adequacy ratio at 18.6%.
“The Bank’s first-quarter performance reflected the recovery path of the Thai economy which, overall, is still fragile and uneven. In addition, geopolitical risk has been on the rise. Amid this challenging business environment and continuing headwinds, the Bank is unwavering in our commitment to helping customers. Specifically, the Bank has successfully migrated more than Baht 249 billion of loans (under the blue scheme) into a comprehensive debt restructuring program under the Bank of Thailand’s framework to ensure customers’ long-term survival. Lastly, we are delighted by a successful outcome of the tender offer to convert SCB shares to SCBX shares with acceptance rate more than the minimum threshold and are confident that this group restructuring will generate value in the long run,” said Arthid Nanthawithaya, Chairman of the Executive Committee and CEO.