SCB posts 9.18% drop in Q1 net profits
NET PROFIT of Siam Commercial Bank and its subsidiaries in the first quarter decreased by 9.18 per cent year on year to Bt10.5 billion, while the rate of non-performing loans (NPLs) improved to 2.64 per cent from 2.89 per cent at the end of 2015.
As a result, the coverage ratio increased to 122.8 per cent at the end of the first quarter from 109.8 per cent at the end of 2015.
“The operating results in the first quarter, particularly with NPL reduction as well as a significant increase in the NPL coverage ratio, reflects the effectiveness of the bank’s risk-management practices in a subdued economic climate,” SCB president Yol Phokasub said.
“In this environment, the SME [small and medium-sized enterprises] and retail segments continue to remain challenged.
These risk-management practices together with advanced analytics will be the foundation for future loan growth as the economy recovers.”
The bank’s operating profits also declined by 9.7 per cent year on year to Bt18.1 billion, following an accounting-policy change by the bank’s subsidiary SCB Life Assurance. SCB Life recalculated policy reserves and reclassified the investment portfolio, which had a net gain of around Bt3.5 billion. The company took into consideration the current interest-rate environment and decided to set up a policy reserve for the year of Bt7.5 billion.
