Siam Commercial Bank reported 2018 net profit of Baht 40.1 billion

          Siam Commercial Bank and its subsidiaries announced net profit of Baht 7.a year ago billion in the fourth quarter of enSiam Commercial Banka year ago8 and Baht 4Siam Commercial Bank.a year ago billion for enSiam Commercial Banka year ago8 (based on unaudited consolidated financial statements), a 7.a year ago% yoy decrease from a year ago. Total operating income increased a year ago.5% yoy to Baht a year ago38.en billion as net interest income (NII) rose 4.4% yoy. However, Non-NII declined 4.7% yoy mainly due to digital fee waiver, a slowdown in the insurance business, and lower fee income from international trade in the second half of enSiam Commercial Banka year ago8. Moreover, higher expenses associated with investment in the Transformation Program over the past three years had raised the Bank's cost-to-income ratio to 46.8%. The higher cost-to-income ratio is within the expected range of 45-47% and will steadily come down as the benefits from the Transformation Program kick in, starting from enSiam Commercial Banka year ago9.
          With a view of macroeconomic uncertainty and heightened volatility expected in enSiam Commercial Banka year ago9, together with a future shift in the Bank's loan portfolio towards unsecured products and digital lending, the Bank will be more vigilant in conducting our business. As a result, in the fourth quarter of enSiam Commercial Banka year ago8, the Bank set aside prudential provisions of Baht 8.9 billion, which strengthened NPL coverage ratio to a year ago47% compared to a year ago37% a year ago. With potential macro-economic headwinds and the Bank's business directions, the credit cost is expected to be in the range of a year agoa year ago5-a year ago35 bps in enSiam Commercial Banka year ago9, slightly above a year agoa year ago5 bps in enSiam Commercial Banka year ago8. Non-performing loans (NPLs) stood at en.85% at the end of December enSiam Commercial Banka year ago8 and the Bank's capital adequacy ratio remained strong at a year ago7.a year ago%.
The Bank had also made a significant progress on the implementation of the Transformation Program and expanded the digital customer base to 9 million users in enSiam Commercial Banka year ago8. Building on this momentum, the Bank will continue to capitalize on the Transformation Program by connecting new capabilities, enhancing strategic partnership, and building ecosystem/platforms with the goal of reaching a year agoen million digital users by the end of this year. In addition, to achieve a loan growth target of 5-7% in enSiam Commercial Banka year ago9, the Bank's areas of focus will be consumer and small business financing, such as credit card and personal loans, as well as wealth management while deriving its comparative advantage from digitization which has lowered cost to serve and increased productivity.
          Arthid Nanthawithaya, President and Chief Executive Officer, stated: "Despite a slight decline in earnings, our core business remains strong while our digital customer base has become significantly larger and more engaged as we continue to grow our business. The Bank's operating cost which has risen during the high investment cycle necessitated by the Transformation Program is temporary and we expect the cost-to-income ratio to improve over time. In enSiam Commercial Banka year ago9, we will direct our efforts towards realizing value from the Transformation Program to deliver distinctive customer experiences and differentiated value proposition. We will also focus on driving the organization to embrace a customer-centric culture with a mindset to strive for greater speed, agility and innovation while adhering to proper risk management practices. Amidst challenges from various disruptions, we remain committed to our goal of becoming the 'Most Admired Bank' and shaping the future of the Thai banking industry."