SCB first-quarter net profit up 13% year on year

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The increase was a result of higher net interest income (NIM) and higher net fee and service income, as well as a decline in net insurance claims.
NIM was Bt22.56 billion, an increase of 4.1 per cent from the first quarter of 2016. The increase was due to 6.2-per-cent loan growth year on year.
Non-interest income increased by 33.2 per cent to Bt10.62 billion year on year, primarily a result of continual growth in net fee and service income as well as higher net insurance-premium income from a decline in net insurance claims.
The non-performing-loan ratio was 2.7 per cent at the end of the first quarter, an increase of 0.06 percentage point from the end of the same quarter in 2016, largely due to higher NPL rates from housing loans and lending to small and medium-sized enterprises. 
In the quarter, SCB set aside loan-loss provisions of Bt5.01 billion or 1.03 per cent of total loans, in effect raising the coverage ratio to 133.4 per cent at the end of the quarter from 122.8 per cent at the end of the same quarter in 2016.
“The bank is satisfied with the financial results,” said SCB president and chief executive officer Arthid Nanthawithaya. 
“This year the transformation project will be a key element in strengthening the bank and paving the way for [SCB] to become the most admired bank. In addition, we are focusing on developing staff capabilities so they can adapt to changes and respond to new business models and client needs in the future.”