Siam Commercial Bank's 2017 net profit falls 9.4% to $1.35b

No thanks to the new accounting standard requirements effective 2019.

The net profit of Siam Commercial Bank and its subsidiaries of $1.35b (Baht 43,152 million) for 2017, based on unaudited consolidated financial statements, is a 9.4% slip from 2016.

The primary reason for the lower net profit was the higher prudent provisions set aside to align existing expected loss principles to those required under new accounting standards effective in 2009, as well as an 11.6% rise in operating expenses mainly from the bank’s investment in digital banking technology to expand the customer base.

Siam Commercial Bank’s total income increased by 2.2% YoY mainly from net interest income and net fee income.

President and CEO Arthid Nanthawithaya said, “The bank has moved into the digital arena and expanded its retail customer base through mobile banking and new payment technologies such as QR codes, a new trend for expanding the customer base of the bank going forward. As for 2017 operating results, the Bank saw positive loan growth in the corporate and retail segments as economic conditions began showing signs of improvement, boosting interest income.”