SCB X sees 0.9% dip in 9M 2024 net profit on lower loans, fee income in Q3
Its third quarter net profit is 13.2% higher than in Q3 2023, however.
SCB X, the parent company of Thailand’s Siam Commercial Bank (SCB), reported a net profit of approximately $959.68m (THB32.24b) for the first nine months of 2024— a 0.9% decrease compared to the same period in 2023.
Its third quarter net profit is $325.65m (THB10.94b), a 13.2% year-on-year (YoY) increase compared to a year earlier, according to a statement posted on the SCB website.
For the quarter, net interest income rose 3.5% YoY to $971.93m (THB32.63b), which in turn pushed net interest margin (NIM) to rise up 0.01 percentage point (ppt) to 3.91%. NIM is 0.17 ppt higher than in Q3 2023.
Overall loans are 0.9% YoY lower, attributed to “prudent new loan underwriting amidst a challenging business environment.”
Fee and other income also declined by 7.5% YoY to $297.11m (THB9.98b) during the quarter, which SCB X blamed on a decrease in bancassurance fees and lending-related fees.
Operating expenses were lower by 4.8% YoY to $523.96m (THB17.6b) for Q3.
Cost-to-income ratio, excluding the impact from the Robinhood transaction, was at 40.9%.
Non-performing loan (NPL) ratio was 3.4% at end-September 2024, slightly higher than the 3.3% recorded in the same month in 2023.
The capital adequacy ratio is 19%.
SCB X CEO Arthid Nanthawithaya noted that the Thai economy "continues to recover slowly amid additional pressures from flooding in several areas."
"The Company continues to prioritize conducting business with prudence, focusing on quality growth and strengthening our financial position," Nanthawithaya said, commenting on their latest finnacial results.
(US$1 = THB33.59; as of 23 October 2024, 12:29 PM)