SCB Reports 9-Month Net Profit of 31.99 Billion Baht, Down 14.3% Due to Decline in Interest Income

The earnings reports from major banks are being released gradually. Most recently, the parent company of Siam Commercial Bank, SCB X Public Company Limited (SCB), announced its Q3 and first nine months 2026 results, showing a net profit of 10.68 billion baht in Q3, down 11.4% year-on-year. This decline was mainly due to lower net interest income following policy interest rate cuts, along with reduced investment and trading income amid volatile markets.

In Q3 2026, SCB recorded expected credit losses of 8.25 billion baht, equivalent to 1.37% of total loans, representing a 23.7% decrease from the same period last year.

Mr. Arthit Nanthawithaya, CEO of SCB X Public Company Limited (SCB), said the quarter’s performance reflects that volatility has become a permanent context for business operations, not a temporary issue. This comes from financial market fluctuations and the Thai economy's recovery, which remains concentrated in technology-related export sectors and large enterprises, while many households and small businesses continue to face pressure.

However, the group's core business remains stable, supported by three key principles: quality growth, expanding non-interest income bases, and proactive asset quality management.

For the first nine months of 2026, SCB posted a net profit of 31.99 billion baht, down 14.3% year-on-year. The main reasons align with Q3 results: declines in interest income and investment/trading income. The net interest margin (NIM) in Q3 2026 was 3.07%, down 0.37% from the previous year. Nonetheless, fee income showed strong growth driven by wealth management, loan-related fees, transaction fees, and insurance sales.

Summary of key financial highlights for the first nine months of 2026:

• Net profit stood at 31.99 billion baht, down 14.3% year-on-year.
• Net interest income was 81.54 billion baht, a decrease of 10.3% year-on-year.
• Fee and other income reached 34.83 billion baht, up 12.8% year-on-year.
• Income from investment and trading was 2.70 billion baht, down 67.4% year-on-year.
• Operating expenses were 50.07 billion baht, down 3.6% year-on-year.
• Cost-to-income ratio stood at 42.1%.
• Non-performing loans (NPLs) totaled 92.40 billion baht, down 3% year-on-year.
• The NPL ratio at the end of Q3 was 3.21%.
• Total loans grew 2.4% compared to the end of 2025.
• The regulatory capital adequacy ratio was 18.5%.

Finally, there will be a leadership transition early in 2027, with Dr. Arak Sutivong set to become Group CEO of SCB X, effective from 1 January 2027 onward.

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