Published on October 18, 2005

Siam Commercial Bank’s third-quarter net profit shot up nearly 45 per cent from the corresponding period last year to Bt5.27 billion, thanks to increases in interest and non-interest income.

Thailand’s fourth largest bank said yesterday that its third-quarter figure compared with Bt3.64 billion in the third quarter of 2004 and Bt4.27 billion in this year’s second quarter.

It was the first bank to announce its third-quarter earnings, and its net profit beat the expectations of analysts.

Capital Nomura Securities earlier forecast a third-quarter net profit for SCB of Bt4.559 billion, DBS Vickers Securities predicted Bt4.27 billion and Seamico Securities, Bt4.44 billion.

The bank said its quarterly interest and dividend income rose 13.1 per cent and its non-interest income jumped almost 24 per cent from the preceding quarter.

However, its net profit for the first nine months of the year fell 5.73 per cent from the figure for the same period last year, to Bt14.58 billion.

SCB explained that the higher net profit for the first nine months of last year was due to an investment gain of Bt5.66 billion.

The bank’s normalised profit for January to September this year improved by 27 per cent year-on-year, from Bt11.51 billion to Bt14.61 billion.

SCB President and chief executive Khunying Jada Wattana-siritham said all sources of revenue had improved.

Loans expanded by 6.1 per cent from the end of 2004. This compared with the bank’s target of 6.8 per cent for the full year. Its net interest margin rose to 3.5 per cent.

SCB’s non-performing loans fell by 11.3 per cent, or 4.1 billion, from the previous quarter, to Bt67.52 billion.

“Operating results were in line with the bank’s policy and targets,” Jada said. “The bank currently has a very strong capital base. Our profitability is enhanced through synergies with companies in SCB Financial Group.”

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