SCB X reports 2.6% higher net profit of $305.43m in Q1
Net interest income rose by fees and other income dropped.
SCB X, the parent company of Thailand’s Siam Commercial Bank, has reported a consolidated net profit of $305.43m (THB11.3b) for Q1 or 2.6% higher than the same period in 2023.
The higher profits were driven by a rise in net interest income and loan growth and offset by a decline in fees and other income.
SCB X’s net interest income rose by 9.2% to $859.55m (THB31.8b), driven by its expanding net interest margin (NIM) and an increase in investment income.
Overall loans grew 2.1%, primarily from housing loans and corporate loans from under SCB Bank. Digital loans and auto title loans under portfolio companies also helped drive up loans, SCB X said in a press release.
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Fees and other income fell by 7.6% to $275.7m (THB10.2b), which was blamed on lower bancassurance fees and lending-related fees.
Operating expenses rose by 8%, whilst the cost-to-income ratio was 42.1%, a slight increase from last year’s 41%.
SCB X notably cited “ongoing challenges posed by an uneven economic recovery and the impact of an elevated level of household debt on vulnerable retail customers.”
The non-performing loan (NPL) coverage ratio remained at 160.6%.
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For 2023, SCB X announced a dividend payout ratio of 80% or THB10.34 per share, significantly higher than the previous year.
(US$1 = THB 37)