SCBX net profit down 18.5% to $316.85m in Q1 on lower interest income

SCBX said it conducted a comprehensive review of the loan portfolios across SCB.

SCB X Public Company Limited (SCBX), the parent company of Siam Commercial Bank, posted a consolidated net profit of $316.85m (THB10.19b) for the first quarter of 2026—a decrease of 18.5% year-on-year (YoY).

The financial institution blamed lower net interest income as a result of policy rate cuts, as well as reduced investment gains.

“The first quarter of 2026 presented a challenging backdrop for the Thai economy, as prolonged conflict in the Middle East exerted significant pressure on both the global and domestic economic environment,” said Arthid Nanthawithaya, CEO of SCB X.

“The ripple effects — including elevated energy prices, higher import costs, and headwinds to the export and tourism sectors — inevitably transmitted through to household and business operating costs,” he added.

Fee income, however, improved whilst operating expenses and provisions declined, SCBX said in an online statement on 21 April.

Net interest income (NII) totalled $832.71m (THB26.78b) in Q12 2026, down 13.7% YoY. Net interest margin (NIM) compressed following four policy cut rates in 2025 and one cut in 2026.

Loan growth was 3.4% YTD, supported by expansion in large corporate and mortgage lending, SCBX said.

Given the backdrop of uncertainty, SCB X talked with its clients to assess the conflict’s impact on them and conducted a review of its loans, Nanthawithaya said.

“In parallel, we conducted a comprehensive review of the loan portfolios across SCB and its subsidiaries to assess debt serviceability and the adequacy of provisioning, while maintaining a disciplined balance between prudent risk management and the pursuit of quality loan growth,” he said.

Non-performing loan (NPL) ratio is at 3.23%, improving from 3.29% in Q4 2025.

Fee and other total income rose 17.7% YoY to $371.89m (THB11.96b). Wealth management fees led the growth, and SCBX also saw steady growth in lending-related and transaction fees, and other fee income.

Investment and trading income totalled  $17.66m (THB 568m), declining 66.5% YoY, reflecting lower gains from the investment portfolio of SCB Bank and SCB 10X.

Operating expenses totalled $518.03m (THB16.66b), 2.3% YoY lower, which SCB X credited to strict cost discipline. Cost-to-income ratio is 42.4% for the quarter.

Provisions declined 4.4% YoY. Coverage ratio is 162.3%.

(US$1 = THB32.16)