SCB Targets 3-5% of Loan Growth in 2021 as Coverage Ratio Remains at a Higher Level

SCB Targets 3-5% of Loan Growth in 2021 as Coverage Ratio Remains at a Higher Level.

The Siam Commercial Bank Public Company Limited (SCB) has announced its 2021 financial targets as follows;

SCB expected loan growth to increase 3-5% in 2021, along with the growing net interest margin (NIM) around 3.0-3.2%. However, non-interest income is expected to be stable for the year, while the cost to income ratio is forecast at low-to-mid 40s.

Non-performing loan (NPL) ratio is expected to increase to 4.0-4.5% from 3.68% in 2020 and 3.41% in 2019. The coverage ratio is expected to remain relatively at a high level of equal or higher than 130%, whereas the bank reported a coverage ratio of 141% in 2020.


SCB recorded a net profit of 27,217 million baht in 2020, decreased 32.68%. The decrease was mainly due to higher provision amid severe economic headwinds and significant operating challenges stemming from the COVID-19 pandemic.

However, pre-provision operating profit grew 12% YoY to 80.4 billion baht (excluding the one-time gain on sale of shares in SCB Life recorded in the previous year), mainly the result of resilient non-interest income growth and effective operating cost control.


Arthid Nanthawithaya, Chairman of the Executive Committee and CEO, stated: “Although last year’s net profit was weighed down by high provisions, our core business performance demonstrated a high degree of resilience with a strong capital position. Since the start of the pandemic, the bank assisted more than one million customers by offering a variety of targeted relief programs. As customers successfully graduated from the program in the second half of the year, loans under the relief program declined significantly to 402 billion baht or 18% of total loans at the end of the year. The newwave of the pandemic currently in Thailand added to the uncertainties of economic recovery in 2021, despite the upcoming rollout of COVID-19 vaccines. Therefore, the bank remains committed to helping our affected customers during this difficult time and continues our efforts to reshape our business model towards creating new technology-driven businesses, generating additional revenue from the bancassurance and wealth management businesses, and deepening our digital transformation.”