SCB X Public Company Limited (SET: SCB) reported net profit of THB 10,677 million for the third quarter of 2026, down 4.0% from the previous quarter, primarily due to mark-to-market losses on investments in debt securities as bond yields rose. Core business income remained stable, supported by an improvement in net interest income and fee income holding at a high level, alongside lower operating expenses and provisions as asset quality continued to improve. For the first nine months of 2026, the Group recorded net profit of THB 31,989 million, down 14.3% from the same period last year.
Stable net interest and fee income help cushion investment volatility
Net interest income was THB 27,452 million, up 0.5% QoQ, with net interest margin (NIM) improving to 3.07%. Loans grew 2.4% from the end of last year, in line with the Group’s selective growth strategy, led by large corporate lending and Gen 2 digital lending. Fee and other income amounted to THB 11,498 million, up 6.2% YoY, and grew 12.8% in the first nine months, exceeding the full-year target.
Wealth management remained a key growth driver for the Group. Although client investment activity moderated from the exceptionally high levels seen in the first half amid range-bound market conditions, the business continued to benefit from deeper client relationships, a broader product offering, and synergies across the Group. Investment and trading income recorded a loss of THB 424 million, compared with a gain of THB 2,552 million in the previous quarter, primarily due to mark-to-market losses on investments in debt securities as bond yields rose.
Sustained cost discipline through AI and automation
Operating expenses were THB 16,363 million, down 4.0% QoQ and 6.3% YoY, reflecting efficiency gains from the adoption of AI and automation across the operations of Group companies. The cost-to-income ratio increased to 42.5% from the previous quarter due to lower investment income, rather than higher expenses. For the first nine months, the ratio stood at 42.1%, in line with the full-year target.
Asset quality continues to normalize, with robust reserves and capital
Overall asset quality continued to improve, supported by proactive debt management, debt restructuring, selective NPL sales and write-offs, and close monitoring of vulnerable industries and customers. New NPL formation at SCB Bank declined significantly from the previous quarter, resulting in a six consecutive quarterly improvement in the Bank’s NPL ratio to 2.95%. The Group’s NPL ratio edged up to 3.21% from 3.17%, mainly due to AutoX’s planned portfolio adjustment. Provisions declined 13.8% QoQ, bringing credit cost down to 1.37%. The coverage ratio and capital adequacy ratio remained robust at 159.4% and 18.5%, respectively.
Arthid Nanthawithaya, Chief Executive Officer of SCBX, commented that “This quarter’s performance underscores that volatility has become an enduring feature of the operating environment, reflected in both financial markets and Thailand’s uneven economic recovery, which remains concentrated in technology-related exports and large corporates, while many households and small businesses continue to face pressure. Nevertheless, the Group’s core businesses remain resilient, underpinned by three strategic priorities: quality growth, expansion of non-interest income, and proactive asset quality management.
At the same time, we are proactively preparing for the evolving financial landscape by deploying AI to enhance service quality and operational efficiency across the Group, while progressing preparations for the launch of our virtual bank, with system stability and customer experience as our highest priorities.
In parallel, we remain committed to supporting customers facing challenges, including highly indebted households and small businesses, through the “Khun Su, Rao Chuay” (You Fight, We Help) program and debt restructuring for customers with recovery potential, as well as timely assistance for those affected by recent flooding. We believe that helping customers and entrepreneurs navigate difficult periods is a critical foundation for the sustainable growth of Thailand’s economy.
Regarding the leadership transition, Dr. Arak Sutivong will assume the role of Chief Executive Officer of SCBX effective January 1, 2027. We have worked closely together to ensure readiness across all dimensions, enabling a smooth and seamless transition while maintaining continuity in the Group’s strategic direction and creating sustainable value for all stakeholders.”
