SCBX ANNOUNCED SECOND-QUARTER NET PROFIT OF BAHT 10.0 BILLION

SCBX has reported a consolidated net profit of Baht 10.0 billion for the second quarter of 2024, a 15.6% yoy decrease. For the first half of the year, the net profit was Baht 21.3 billion, a 6.9% yoy decrease.

Bangkok: SCB X Public Company Limited (SCBX) has reported a consolidated net profit of Baht 10.0 billion for the second quarter of 2024, a 15.6% yoy decrease. For the first half of the year, the net profit was Baht 21.3 billion, a 6.9% yoy decrease.

For the quarter, net interest income increased by 5.8% yoy to Baht 32.6 billion, resulting from an expansion in the net interest margin (NIM) and a slight overall loan growth of 0.6% yoy through strict new loan underwriting practices and a focus on quality customers amid a challenging business environment. Fee and other income declined by 8.3% yoy to Baht 10.3 billion, due to a decrease in bancassurance fees, transactional fees and lending-related fees.

Operating expenses increased by 9.1% yoy to Baht 18.6 billion. Cost-to-income ratio excluding the one-off expenses from Robinhood app closure was at 41.2%.

The Company set aside provisions of Baht 11.6 billion, a 3.9% yoy decrease, which include a special provision to mitigate potential risks associated with one large corporate client. The non-performing loan (NPL) coverage ratio remained high at 161.7%.

Overall asset quality is well under control. The NPL ratio was 3.3% at the end of June 2024, slightly higher than the 3.2% recorded at the end of June 2023. The capital adequacy ratio remained strong at 18.8%.

Arthid Nanthawithaya, Chief Executive Officer of SCBX, commented:

“The growth of the Thai economy in the first half of the year has fallen short of expectations, with no clear sign of economic recovery. In this challenging environment, SCBX places great importance on conducting our business cautiously, focusing on financial stability, maintaining appropriate level of reserves, emphasizing fee income growth, particularly fee income from wealth management business, and managing costs effectively.

Despite the challenges, the Company remains committed to building a strong foundation. In June 2024, SCBX offered new investment opportunity with solid returns to individual, institutional, and high-net-worth investors. The offering received an overwhelming response to our 7 tranches of debenture issuance, totaling Baht 42 billion.”