SCB ANNOUNCED SECOND-QUARTER PROFIT OF BAHT 8.8 BILLION ANDFIRST-HALF PROFIT OF BAHT 18.9 BILLION
Bangkok: Siam Commercial Bank and its subsidiaries reported consolidated net profit of Baht 8.8 billion for the second quarter of 2021, up 5.4% yoy. Pre-provision operating profit also increased 4.8% yoy to Baht 21.1 billion mainly due to higher non-interest income and reduced operating expenses. For the first half of 2021, net profit increased 7.3% yoy to Baht 18.9 billion.
For the second quarter of 2021, net interest income declined 1.3% yoy to Baht 23.5 billion given the current low interest rate environment and the Bank’s shift toward high quality loans.
Non-interest income increased 4.0% yoy to Baht 13.0 billion largely from recurring non-interest income from bancassurance and wealth management businesses.
Expenses declined 4.7% yoy to Baht 15.4 billion due to lower staff related expenses. The Bank’s cost-to-income ratio for the second quarter went down from last year to 42.2%.
Given the current economic uncertainty, the Bank set aside Baht 10.0 billion of provisions in the second quarter and Baht 20.0 billion in total for the first half. Non-performing loan (NPL) ratio remained stable at 3.79% at the end of June 2021. This reflected the Bank’s proactive NPL management. Nonetheless, the Bank still maintained NPL coverage ratio at a high level of 142.3% as well as a strong capital adequacy ratio at 17.9%