SCB Records THB11.3 Billion of Net Profit in 1Q24, Expecting Improvement of Credit Cost in 2Q

SCB X Public Company Limited (SET: SCB) has announced its 1Q24 consolidated financial statement through the Stock Exchange of Thailand as follows;

Year 1Q24 1Q23
Net Profit (Loss)
Million Baht
11,281.02 10,995.38
Earning Per Share
3.3500 3.2700
% Change 2.60

SCB reported a net profit of Baht 11.3 billion for the first quarter of 2024, a 2.6 % yoy increase. For the quarter, net interest income increased by 9.7% yoy to Baht 31.8 billion resulting from an expansion in the net interest margin (NIM) and an increase in investment income. Overall loans grew by 2.1% yoy, primarily from housing loans and corporate loans under SCB Bank, as well as digital loans and auto title loans under portfolio companies.

Fee and other income declined by 7.6% yoy to Baht 10.2 billion, due to a decrease in bancassurance fees and lending-related fees.

Operating expenses increased by 8.0% yoy to Baht 18.1 billion, while the cost-to-income ratio was at 42.1%, slightly increased from the previous year’s 41.0%. This reflects our commitment to effective cost management and the ongoing effort to increase operational efficiency.


In 1Q24, expected credit losses increased to Baht 10,201 million (167 bps of total loans) to preemptively provide a cushion for overall uneven economic recovery at CardX while expected credit losses at the Bank decreased due to the absence of a one-off provision for a specific corporate client in 1Q23. The amount not only reflected the pro-cyclicality of forward-looking Expected Credit Loss (ECL) models under the TFRS 9 framework, but also included management overlays set accordingly to current economic uncertainties. The non-performing loan (NPL) coverage ratio remained at 160.6%.

Amid an uneven economic recovery, credit costs for Gen 2 remained at a high level of 9.6%. Nonetheless, we expect an improvement in credit costs in the second half of 2024.

Overall asset quality is well under control. The NPL ratio was 3.5% at the end of March 2024, slightly higher than the 3.3% recorded at the end of March 2023. The capital adequacy ratio remained strong at 18.6% and the Return on Equity (ROE) stood at 9.3%.


In terms of new businesses, SCB Bank has entered into a Sale and Purchase Agreement (SPA) to acquire a 100% stake in Home Credit Vietnam Finance Company Limited. This transaction represents a significant milestone for SCBX to establish itself as a regional financial technology group with immediate return accretion upon the completion of the transaction.

Moreover, SCBX and WeBank, a leading digital bank in China, have reached an agreement to collaborate on the development of innovative technology in Thailand in preparation for the application of virtual bank license. We anticipate that robust, innovative, and agile technology will play a pivotal role in the success of our virtual bank venture.


“SCBX continues to achieve higher operating profits and remains committed to supporting government policies aimed at addressing Thailand’s household debt issues by providing continuous assistance to vulnerable customers based on their debt-servicing ability.

The company is also working on building capabilities for future growth and has recently partnered with WeBank, a prominent digital bank from China, to collaborate on exploring the deployment of innovative technology in pursuit of the BoT’s virtual bank license, with the aim of tackling the problem of financial inclusion in Thailand. Additionally, SCBX has launched “Typhoon”, an advanced Large Language Model for Thai, in January 2024. This milestone underscores our dedication to advancing technology within the SCBX Group to become an AI-first organization through innovative solutions and technology,” said Arthid Nanthawithaya, Chief Executive Officer of SCBX.