SCB Books ฿8.8Bn of Net Profit on a Solid Operating Performance in 2Q21

SCB's 2Q21 earnings rose 5% to 8,814 million baht from higher net fee income and lower operating expenses.

The Siam Commercial Bank Public Company Limited (SCB) has reported its 2Q21 consolidated financial statement through the Stock Exchange of Thailand as follows;

SCB reported a net profit of 8,814 million baht in 2Q21, increased 5.44% compared to a net profit of 8,359 million baht in 2Q20. Higher net fee income and lower operating expenses were the key drivers of net profit growth, although net gain on investments, net interest income (NII) and net gain on financial instruments measured at FVTPL were lower.

Pre-provision operating profit also increased 4.8% YoY to Baht 21.1 billion mainly due to higher non-interest income and reduced operating expenses. For the first half of 2021, net profit increased 7.3% YoY to 18.9 billion baht.

For the second quarter of 2021, net interest income declined 1.3% YoY to 23.5 billion baht given the current low interest rate environment and the Bank’s shift toward high quality loans.

Non-interest income increased 4.0% YoY to 13.0 billion baht largely from recurring non-interest income from bancassurance and wealth management businesses.

Expenses declined 4.7% YoY to 15.4 billion baht due to lower staff related expenses. The Bank’s cost-to-income ratio for the second quarter went down from last year to 42.2 %.


Given the current economic uncertainty, the Bank set aside 10.0 billion baht of provisions in the second quarter and 20.0 billion baht in total for the first half.

Non-performing loan (NPL) ratio remained stable at 3.79% at the end of June 2021. This reflected the Bank’s proactive NPL management. Nonetheless, the Bank still maintained NPL coverage ratio at a high level of 142.3% as well as a strong capital adequacy ratio at 17.9%.


“During the first half of the year, the Bank showed solid operating performance with sufficient financial strength to weather uncertainty from new COVID-19 outbreaks.Amid challenging business environment and continuing headwinds, the Bank has extended our relief programs to affected customers and provided additional support through various CSR initiatives, such as free food delivery on SCB Robinhood, which are rooted in our belief that “Community survival means the Bank’s survival,” said Arthid Nanthawithaya, Chairman of the Executive Committee and CEO of SCB.


“Furthermore, the Bank is working on developing comprehensive debt restructuring plans to maximize the chance of customers’ survival and sustainable recovery. At the same time, the Bank is laying the groundwork for post-pandemic business opportunities by building new businesses with high growth potential, offering the next generation digital banking experience, and broadening the scope of customer engagement beyond financial services,” he added.

Back to top button