SCB Falls 11% after Setting Higher Provisions in 2019, Causing Net Profit to Increase 1%
SCB Falls 11% after Reporting a 1% Increase of Net Profit in 2019 due to Setting Higher Provisions.
SCB Falls 11% after Reporting a 1% Increase of Net Profit in 2019 due to Setting Higher Provisions.
20 ม.ค. 2563

The share price of Siam Commercial Bank Public Company Limited (SCB) plunged ฿13.50/share or 11.54% to trade at ฿103.50/share as of 10:12 a.m. on January 20, 2020, after reporting a yearly financial statement last Friday.
 
The plummet might due to the disappointment from investors on a yearly net profit in 2019 to increase nearly 1% as a result of setting aside additional provisions of 9.1 billion baht on top of its normalized quarterly requirement of 6.2 billion baht in Q3.
Meanwhile, SCB’s loan (NPL) ratio rose to 3.41% at the end of December 2019 from below 3% in the first half of 2019.
As for its yearly performance, the net interest income grew at 3% yoy to Baht 99.4 billion. Despite falling interest rates in 2019 and a slight decline in the overall portfolio size, the Bank was able to sustain this growth momentum by rebalancing its loan portfolio towards higher margin products.
SCB reports a net profit in 2019 at 40.4 billion baht, primarily driven by the recognition of extraordinary gains from sale of SCB Life. Nevertheless, the Bank set aside higher provisions in 2019, resulting in the annual net profit to increase by nearly 1%.
 