The Siam Commercial Bank and its subsidiaries have announced a 6.6 per cent year on year increase in total operating income as non-interest income grew by 13.4 per cent, largely from higher net trading and foreign exchange income, and net fee income coupled with a 3.4 per cent year on year growth in net interest income.
However, a rise in operating expenses from higher marketing expenses for digital acquisition and higher investment in digital banking as part of the bank’s strategy led to a decline in net profit of 4.6 per cent year on year to Bt11.36 billion in the first quarter, based on unreviewed consolidated financial statements
The non-performing loan ratio improved to 2.77 per cent in the first three months of 2018 from 2.83 per cent at the end of last year. Loan loss provisions were set at Bt5.01 billion or 0.98 per cent of total loans in 1Q18, consequently improving the bank’s coverage ratio to 141.9 per cent at the end of 1Q18 from 137.3 per cent at the end of 2017.
CEO Arthid Nanthawithaya said: “The bank remains focused on our customers' satisfaction and experience with the speed and high security of our digital banking platform.
“Although competition in the banking industry has intensified from both commercial banks and non-bank players, we have risen to this challenge by implementing the ‘Going Upside Down’ strategy to enhance the bank’s flexibility and agility in responding to evolving customer lifestyles. In the long run, the bank believes that mobile banking will expand with unstoppable growth, and will be the source of the bank’s future business opportunities,” Arthid added.