SCBX reports 15.6% net profit decline in Q2

Economic growth fell short of expectations, SCBX’s CEO said.

SCB X, the parent company of Thailand’s Siam Commercial Bank (SCB), reported a net profit of THB10b for Q2 2024– 15.6% lower than a year ago.

For the first six months of 2024, net profit was 6.9% lower at THB21.3b.

CEO Arthid Nanthawithaya noted that the Thai economy growth has “fallen short of expectations” with no clear sign of economic recovery.

“SCB X places great importance on conducting our business cautiously, focusing on financial stability, maintaining appropriate level of reserves, emphasizing fee income growth, particularly fee income from wealth management business, and managing costs effectively,” Nanthawithaya said.

The decrease was also partly due to lower fee and other income, which fell 8.3% on the back of lowre bancassurance fees, transactional fees, and lending-related fees, SCB X said in a statement posted on its website.

In contrast, net interest income rose by 5.8% to THB32.6b, thanks to the bank’s net interest margin (NIM) expanding and a slight overall loan growth of 0.6% compared to Q2 2023.

Operating expenses rose by 9.1% to THB18.6b. 

The company set aside lower provisions in Q2, at just THB11.6b. This includes a special provision to mitigate potential risks associated with one large corporate client, SCB said.

The non-performing loan (NPL) coverage ratio was 161.7% as of the end of the second quarter.