SCB shows new record earning in 2012

Siam Commercial Bank reported the 2012 net profit of Bt40.2 billion, the highest by value by large-sized banks which have announced the financial statements.

Bangkok Bank and Kasikornbank earlier announced their earnings for the year reached Bt33 billion and Bt35.3 billion, respectively. Krungthai Bank announced the Bt23.5 billion earning for the year. Its fourth-quarter earning was only Bt890 billion, due to additional loan-loss provisions.

In a statement, SCB attributed the 28.9 per cent year-on-year increase in net profit to the robust loan growth of 19.7 per cent in the year, which resulted in higher growth in net interest income, an increase in net insurance premium, and higher net trading and FX income.

"The results reaffirm the strength of SCB's universal banking franchise together with the talent and spirit of its staff and the increasing loyalty of its growing customer base. Importantly, the bank stands well positioned to face the competitive challenges that lie ahead in the volatile global macro-economic environment, competitive domestic landscape and the emergence of the AEC in the near future," said Vichit Suraphongchai, executive chairman.

The bank saw huge loan growth in the automobile (45.9 per cent), housing (21.3 per cent) and SME segments (25.5 per cent). As a cushion against uncertainties, the bank set aside Bt4 billion as additional loan-loss provision, though its non-performing loans reached the new post-Asian economic crisis low of 2.13 per cent, from 2.61 per cent at end-2011. Provisions now accounted for 144.8 per cent of NPLs.

Despite competition, SCB maintained net interest margin at 3.18 per cent.

"2012 results not only manifest record net profits, high growth and better loan quality but also the competitive edge of the Bank - competitive and innovative products with quality services to provide a compelling value proposition to a broad range of customers. Ultimately, the results underscore the collective efforts of our employees to make SCB the 'Bank of Choice' in Thailand for all its stakeholders," said Kannikar Chalitaporn, the bank’s president.