SCBX Announced 2022 net profit of 37.5 billion baht
SCB X Public Company Limited reported a net profit of 37.5 billion baht in 2022, a 5.5% YoY increase, mainly due to strong net interest income growth, cost management discipline, and lower provisions. Nevertheless, it was offset by a fee and investment-related income decline.
For 2022, net interest income rose 13.3% YoY to 107.9 billion baht, following an increase in net interest margin under the growth strategy towards quality loans and an upward interest rate trend. Meanwhile, overall loans expanded by 3.3% from the previous year.
Fee and other income stood at 44.9 billion baht, down 4.7% YoY due to the slowdown in the wealth management business. Investment and trading income also dropped 79.1% YoY to 1.7 billion baht due to extreme monetary and capital volatility.
Operating expenses increased 10.0% YoY to 69.9 billion baht, mainly on the back of increasing business activities and restructuring efforts under the ‘Mothership’ strategy. However, the cost-to-income ratio remained at an appropriate level of 45.2%, a slight increase from the previous year.
The Company set aside provisions of baht 33.8 billion for 2022, down 19.5% YoY, thanks to proactive measures and a prudent approach to credit quality management implemented since the onset of the Covid-19 pandemic as well as the recovery in business sectors. The non-performing loan (NPL) coverage ratio increased to 159.7%.
The NPL ratio eased to 3.34% at the end of 2022, from 3.79% at the end of 2021, largely due to a comprehensive debt restructuring program under the Bank of Thailand's framework and effective NPL management. The capital adequacy ratio also remained strong at 18.9%.
Arthid Nanthawithaya, Chief Executive Officer of SCBX, said
“In the next 1-2 years, we will emphasize leapfrogging of digital-lending businesses, following talents and business strategies preparations. For SCB Bank, we will continue to proceed with the ‘Be a Better Bank’ strategy, to achieve quality growth at a lower cost base. Our technology and digital asset businesses will adopt a prudent investment approach, taking into consideration market conditions. Regarding financial performance in 2022, SCBX continued its growth momentum and maintained financial stability by adopting appropriate risk management under extreme volatility in the capital market. Looking forward, we believe SCBX and its portfolio companies can enjoy significant growth potential thanks to the ‘Mothership’ strategy and overall business recovery.”
