For 2022, net interest income rose 13.3% yoy to Baht 107.9 billion, following an increase in net interest margin under the growth strategy towards quality loans and upward interest rate trend. Meanwhile, overall loans expanded 3.3% from the previous year.
Fee and other income stood at Baht 44.9 billion, down 4.7% yoy due to the slowdown in wealth management business. Investment and trading income also dropped 79.1% yoy to Baht 1.7 billion due to extreme volatility in the money and capital markets.
Operating expenses increased 9.9% yoy to Baht 69.9 billion, mainly on the back of increasing business activities and restructuring efforts under the 'Mothership' strategy. However, the cost-to-income ratio remained at an appropriate level of 45.2%, a slight increase from the previous year.
The Company set aside provisions of Baht 33.8 billion for 2022, down 19.5% yoy, thanks to proactive measures and prudent approach to credit quality management implemented since the onset of the COVID-19 pandemic as well as the recovery in business sectors. The non-performing loan (NPL) coverage ratio increased to 159.7%.
The NPL ratio eased to 3.34% at the end of 2022, from 3.79% at the end of 2021, largely due to a comprehensive debt restructuring program under the Bank of Thailand's framework and effective NPL management. The capital adequacy ratio also remained strong at 18.9%.
Arthid Nanthawithaya, Chief Executive Officer of SCBX, commented:
"In 2022, SCBX completed the restructuring efforts under the 'Mothership' strategy and we're ready to move towards our goal to become a technology company with steady growth. In the next 1-2 years, we will emphasize leapfrogging of digital-lending businesses, following preparations of talents and business strategies. For SCB Bank, we will continue to proceed with the 'Be a Better Bank' strategy, to achieve quality growth at a lower cost base. Our technology and digital asset businesses will adopt a prudent investment approach, taking into consideration market conditions. Regarding financial performance in 2022, SCBX continued its growth momentum and maintained financial stability by adopting appropriate risk management under extreme volatility in the capital market. Looking forward, we believe SCBX and its portfolio companies can enjoy significant growth potential thanks to the 'Mothership' strategy and overall business recovery."
Source: SCB X