SCB Shows Robust Growth in 3Q22 amid Declining Provisions and Strong Interest Income

SCB X Public Company Limited (SET: SCB) has announced its 3Q22 consolidated financial statement through the Stock Exchange of Thailand as follows;

Quarter 3Q22 3Q21
Net Profit (Loss)
Million Baht
10,308.62 8,815.74
Earning Per Share
3.0600 2.5900
% Change 16.93
9 Months 2022 2021
Net Profit (Loss)
Million Baht
30,403.41 27,718.08
Earning Per Share (Baht) 8.9900 8.1500
% Change 9.69

SCB reported a net profit of Baht 10,308 million in 3Q22, increased 16.93% from a net profit of Baht 8,815 million in 3Q21 due to higher net interest income and lower provisions. Pre-provision operating profit went up 8.2% to Baht 22.8 billion.

Compared to the previous quarter, net profit grew 2.6% as net interest income and income from fees and others remained strong.

Expected credit loss dropped by 22.8% YoY and 24.4% QoQ to Baht 7,750 million. In the 9-month period, expected credit loss declined by 11%.

Non-performing loans declined qoq to 3.34% as a result of NPL sales. At the end of September 2022, the Company’s coverage ratio rose to 163.8%, up 10.5% QoQ and 24.4% from the end of 2021 largely from a significant decline in NPLs. However, the Company’s total loan loss reserve as a percentage of total loans (LLR %) declined qoq to 6.3% following a decline in total allowance from NPL sales.

“SCBX continued to experience robust growth, reflecting the overall economic recovery and our prudent risk management, and support customers’ business recovery. At the same time, the newly established businesses under the “mothership” strategy have made significant progress. For instance, AutoX’s foray into the auto title loan market under “Chaiyo Money” brand has expanded customer base with more than Baht 3,000 million worth of loans in just a single quarter after its launch. InnovestX unveiled the first investment super app in Thailand that combines trading of traditional securities and digital securities into a unified platform. Moreover, Robinhood platform has fully transformed into a super app by adding online travel agent service, mart service, and express service as well as having secured a ride-hailing service license. In addition, SCBX received a one-off dividend payment from the Bank this quarter to implement the restructuring plan in order to become a leading financial technology group in the region,” Arthid Nanthawithaya, Chief Executive Officer of SCBX said.