Bangkok: Siam Commercial Bank and its subsidiaries reported consolidated net profit (based on unreviewed financial statements) of Baht 4.6 billion, a 69% yoy decrease, for the third quarter of 2020. Net profit came down from higher normal provisions in this quarter and a one-off gain related to sale of shares in SCB Life Assurance PCL (SCB Life) recorded in the same period last year. Excluding these extraordinary items, pre-provision operating profit would have been largely unchanged yoy but net profit would have still fallen by 56% yoy. Net profit for the first nine months of 2020 was Baht 22.3 billion, a 36% yoy decrease.


Net interest income decreased 9% yoy to Baht 23.7 billion because of lower NII contribution following the SCB Life divestment as well as narrowing net interest margin mainly due to a sharp drop in interest rates following multiple rate cuts in the first half of this year. Total loans grew by 1% yoy and 3% ytd.


Excluding the one-time gain on sale of shares in SCB Life last year, non-NII growth in the third quarter would have increased 5% yoy to Baht 10.8 billion. As economic activities gradually resumed following the easing of lockdown restrictions, recurring non-interest income showed initial signs of recovery from the previous quarter with 10% qoq and 7% yoy growth.


Operating expenses declined 10% yoy to Baht 15.7 billion largely from effective cost control measures amid a tough economic environment. However, with revenue under pressure from the impact of the COVID-19 pandemic, the Bank’s cost-to-income ratio for the third quarter increased to 46%.


In addition to the normal non-performing loan (NPL) formation, the Bank has qualitatively downgraded the riskiest and most vulnerable customers in the relief program following a detailed loan portfolio assessment. As a result, NPL ratio rose to 3.32% at the end of September from 3.05% at the end of June.


Given the economic uncertainty and potential credit migration brought about by COVID-19, the Bank set aside provisions of Baht 12.9 billion for the third quarter. NPL coverage was maintained at a high level of 146% and the Bank’s capital adequacy ratio remains strong at 18.7%.


Arthid Nanthawithaya, Chairman of the Executive Committee and CEO, stated:


“Despite the economy showing signs of bottoming out as indicated by recent positive data, the path to economic recovery from COVID-19 remains uncertain and uneven across sectors. Since the start of the pandemic, the Bank has assisted more than 1.1 million customers with Baht 840 billion worth of loans under the relief program. In the third quarter, the majority of the Bank’s customers were able to resume their loan repayment after the end of the relief program while those who remain affected continue to receive assistance from the Bank during this uncertain time. The Bank has also launched an on-line marketplace,, to provide support for tourism-related SMEs and is in the final stage of preparation for a commercial release of a food-delivery platform “ROBINHOOD”. In addition, the Bank continues to focus on leveraging digital capabilities and partnerships to accelerate the development of new digital business models and to drive sustainable growth in the future.”



SCB – Financial Highlight