SCBX announces Q2 net profit of 10 billion baht

For the quarter, net interest income rose 5.8% YoY to 32.6 billion baht, driven by an expansion in 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 10.3 billion baht due to decreases in bancassurance fees, transactional fees, and lending-related fees.

Operating expenses increased by 9.1% YoY to 18.6 billion baht. The cost-to-income ratio, excluding one-off expenses from the Robinhood app closure, was 41.2%.

The company set aside provisions of 11.6 billion baht, a 3.9% YoY decrease, including 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 reserves, emphasizing fee income growth—particularly from wealth management—and managing costs effectively. Despite the challenges, the company remains committed to building a strong foundation. In June 2024, SCBX offered a new investment opportunity with solid returns to individual, institutional, and high-net-worth investors. The offering received an overwhelming response to our seven tranches of debenture issuance, totalling 42 billion baht.”