Siam Commercial Bank manages to keep 1Q15 earnings flat at THB13bn

Thanks to good cost-control.

It has been noted that although Siam Commercial Bank booked a THB1.5bn one-off charge for KMITL embezzlement case in 1Q15, it managed to keep earnings flat YoY at THB13bn.

According to a research note from Maybank Kim Eng, this was the result of good cost-control. Excluding the large onetime expense, opex was flat YoY.

Loans grew 1.8% QoQ, led by its SME (+2.7%), housing (+2.3%) and wholesale (+2.0%) segments. Despite interest-rate cuts, NIM slid only 3bps QoQ to 3.19%, thanks to lower deposit costs.

Here's more from Maybank Kim Eng:

In contrast, KBANK’s NIM contracted 18bps QoQ in 1Q15. SCB’s non-NII also grew 4% YoY, supported by higher fee income, forex gains and dividend income.

New NPL formation was flat YoY at 0.44%. NPL ratio dipped to 2.39% from 2.41% in 4Q14. SCB sold THB1.7b NPLs in 1Q15.

Special mention loans grew 2.5% QoQ. Credit costs were 80bps vs KBANK’s 104bps. Coverage was flat at 138% vs KBANK’s 140%.

Also Read

Alliance Bank lowers fixed deposit rates

Weekly Global News Wrap: ECB raises concerns over UniCredit’s high turnover; China warns banks against “one-sided” credit pursuit

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit