SCB reports Q1 net earnings topping Bt10 bn

The increase excludes a one-time investment gain arising from the acquisition of shares in SCB Life, which was booked in March, 2011.

The sharp year-on-year increase in SCB’s net profit was mainly the result of higher net interest income of Bt14.17 billion, representing a 29-per-cent increase year on year thanks to robust loan growth of 19.6 per cent.

Loan growth in the quarter was broadly based, with wholesale loans increasing by 10.5 per cent year on year, small and medium-sized enterprise lending by 34.1 per cent, and retail loans by 23.9 per cent.

Stripping out the investment gain from the acquisition of SCB Life in the first quarter of last year, non-interest income rose by 12.4 per cent year on year, primarily from 69.5-per-cent higher insurance premiums net of claims and 33.6-per-cent higher net trading income.

The bank has set aside Bt1.5 billion in loan-loss provisions for the current quarter, with its the non-performing loan (NPL) ratio standing at 2.39 per cent at the end of the March, down from 2.61 per cent as at the end of 2011.

The coverage ratio – NPLs to total loan-loss provisioning – improved to 131.6 per cent at the end of the first quarter, from 127.1 per cent as the end of last year.

Vichit Suraphongchai, chairman of the bank’s executive committee, said: "The results attest to the positioning of the SCB franchise in a sharply improving economic climate. The upsurge in profitability is the result of strong customer demand across the board and the deeper penetration of the bank’s fee-based services.

"The results also speak to the outcome of the enhanced capabilities that the bank has nurtured through its ongoing transformational change programme and the solid customer relationships that have been forged at almost every level."

Kasikornbank, meanwhile, yesterday reported a first-quarter net profit of Bt8.98 billion, for an increase of 47 per cent year on year and 196.37 per cent quarter on quarter.

Lending in the first three months was Bt18.08 billion, up 28 per cent from the same period last year and 0.8 per cent quarter on quarter.

In a filing to the Stock Exchange of Thailand, Kasikornbank said net interest income had increased year on year by 15.24 per cent to Bt14.92 billion and non-interest income by 19.32 per cent to Bt9.85 billion, due mainly to growth in fees and service income, as well as in net premiums earned from insurance business.

At the end of the first quarter, the bank had assets of Bt1.85 trillion, a rise of 7.8 per cent from Bt1.72 trillion as at end of last year, due mostly to increasing inter-bank and money-market items, plus investments.

Gross NPLs improved to 2.35 per cent at the end of the quarter, from 2.45 per cent at the close of 2011.

The bank said in its filing to the stock exchange that it had also closely evaluated and monitored loan quality from flooding impacts.

With a capital adequacy ratio (CAR) of 15.48 per cent – for a 9.59-per-cent Tier-1 capital ratio – the bank exceeds the Bank of Thailand’s minimum requirements.

Incorporating net profit from the first quarter and other related items, CAR was 17.01 per cent with a Tier-1 capital ratio of 11.14 per cent.

Tisco Financial Group yesterday announced an unaudited net profit of Bt836.8 million for the first quarter, representing a 0.99-per-cent increase from Bt828.6 million in the same period last year.

In its filing to the bourse, Tisco stated that NPLs at the end of March stood at Bt1.93 billion, or 0.88 per cent of outstanding lending. Its CAR was 14.17 per cent.