Siam Commercial Bank PCL's fourth-quarter net profit fell 9.8% on year as a rise in income was offset by Covid-19-related impairment losses.
The Thai lender on Thursday reported a net profit of 4.97 billion baht ($166.1 million) for the quarter. For the full year of 2020, SCB's net profit fell 33% to THB27.22 billion.
Net interest income in the fourth quarter rose 2.9% to THB23.62 billion largely due to lower funding costs and fees, while non-interest income rose 5.6% to THB12.75 billion. The income gains marked a reversal from the third quarter, when both segments fell.
Provisions set aside amid the Covid-19 pandemic, however, rose 48% on year to THB14.23 billion. The bank expects to make more provisions in 2021, though it said the amount had likely already peaked.
SCB's nonperforming loan ratio rose to 3.68% at the end of December, up from 3.32% at the end of September and 3.05% at the end of June. It said it expects NPL ratio to rise to a range of between 4.0% and 4.5% in 2021.
Going forward, the bank noted that "the new wave of the pandemic currently in Thailand [has] added to the uncertainties of economic recovery in 2021." It targets a loan growth of 3%-5% for the year, with flat growth of non-interest income.
Write to Ben Otto at email@example.com
(END) Dow Jones Newswires
January 21, 2021 19:56 ET (00:56 GMT)Copyright (c) 2021 Dow Jones & Company, Inc.