For the first quarter of 2022, net interest income increased 5.9% yoy to Baht 24.7 billion. The primary reasons for this increase were the Bank's effective funding cost management and higher loan yields despite limited loan growth.
Non-interest income fell 9.9% yoy to Baht 13.0 billion largely from lower gains on the investment and a slowdown in the wealth management business under the prevailing risk-off sentiments.
Expenses increased 5.9% yoy to Baht 16.0 billion driven by an increase in overall business activities.
Nevertheless, the Bank's cost-to-income ratio for the first quarter remained at 42.4%.
Provisions in the first quarter were set at Baht 8.8 billion, down 12.6% yoy from the elevated levels in the past two years.
Non-performing loan (NPL) ratio declined to 3.70% at the end of March 2022 from 3.79% at the end of December 2021. The Bank also maintained a high NPL coverage ratio at 143.9% as well as a strong capital adequacy ratio at 18.6%.
Arthid Nanthawithaya, Chairman of the Executive Committee and CEO, stated: "The Bank's first-quarter performance reflected the recovery path of the Thai economy which, overall, is still fragile and uneven. In addition, geopolitical risk has been on the rise. Amid this challenging business environment and continuing headwinds, the Bank is unwavering in our commitment to helping customers. Specifically, the Bank has successfully migrated more than Baht 249 billion of loans (under the blue scheme) into a comprehensive debt restructuring program under the Bank of Thailand's framework to ensure customers' long-term survival. Lastly, we are delighted by a successful outcome of the tender offer to convert SCB shares to SCBX shares with acceptance rate more than the minimum threshold and are confident that this group restructuring will generate value in the long run."
Source: Siam Commercial Bank