Bangkok: Siam Commercial Bank and its subsidiaries announced a net profit of Baht 11,912 million for 1Q17 (based on unreviewed consolidated financial statements), an increase of 13.0% from the same period last year. The increase was a result of higher net interest income, higher net fee and service income, as well as a decline in net insurance claims.
Net interest income was at Baht 22,561 million, an increase of 4.1% from 1Q16. The increase in net interest income was due to a 6.2% loan growth over the past year.
Non-interest income increased by 33.2% to Baht 10,624 million in 1Q17 from 1Q16, primarily a result of continual growth in net fee and service income as well as higher net insurance premium income from a decline in net insurance claims.
The non-performing loan ratio stood at 2.70% at the end of 1Q17, an increase of 0.06% from the end of 1Q16, largely due to higher NPLs from housing loans and from the SME segment. In this quarter, the Bank set aside loan loss provisions of Baht 5,010 million or 1.03% of total loans, effectively raising the coverage ratio to 133.4% at the end of 1Q17 from 122.8% at the end of 1Q16.
President and Chief Executive Officer Arthid Nanthawithaya, commenting on the Bank's first quarter performance, noted that, “The Bank is satisfied with the financial results. This year the transformation project will be a key element in strengthening the Bank and paving the way for the Bank to become the most admired bank. In addition, we are focusing on developing staff capabilities so they can adapt to changes and respond to new business models and client needs in the future.”