SCB's quarterly earnings up 24%

 

In a statement, the bank attributed the increase to higher net interest income on the back of robust loan growth, strong insurance premium income and higher net fee and service income. Also, while asset quality continued to improve, with non-performing loans at a new post-1997 low, the bank set aside significant additional provisions.

Executive Chairman Vichit Suraphongchai said that the results reaffirm the strength of SCB’s universal banking franchise as well as the faster than expected recovery of the Thai economy after last year's floods. "The results reflect the competitive edge that our multi-year transformative change programme provided to the bank”.

In the quarter, SCB saw its net interest income increase by 20.9 per cent to Bt15 billion, an all-time high for the bank. Loan growth in the quarter rose 20.2 per cent on year. Finally, the net interest margin at 3.22 percentage points was better than expected and much higher than the preceding quarter.

Meanwhile, its non-interest income rose 19.4 per cent on year, due partly to 42.2 per cent increase in insurance premium income.

At the end of June, NPLs stood at 2.25 per cent of outstanding loans. In the quarter, SCB set aside additional Bt1 billion in provision, pushing the NPL coverage ratio to 140.2 per cent from 114.5 per cent at the end of June 2011 and 127.1 per cent at the end of 2011. 

"“The record results demonstrated the soundness of our business strategies, the effectiveness of our business model and superior execution capability. Underscoring these strengths is the overarching drive across the SCB group to engender deeper customer intimacy and strong employee engagement that provides sustainability to these record results and further enhances shareholder value," said SCB President Kannikar Chalitaporn.