Date: 24 October 2024
Broker: UOB Kay Hian
Overview
SCB X (Siam Commercial Bank) reported a net profit of Bt10.9 billion for the third quarter of 2024, reflecting a 13% increase year-on-year and a 9% increase quarter-on-quarter. The results exceeded both UOB Kay Hian’s and market expectations by 15% and 10%, respectively.
Financial Performance
- Net Profit: Bt10.9 billion
- Year-on-Year Change: +13%
- Quarter-on-Quarter Change: +9%
- PPOP: Declined by 1% year-on-year but was flat quarter-on-quarter.
Key Events
SCB recorded a loss of Bt731 million due to the sale of Purple Ventures and associated one-off impairment expenses of Bt797 million from the second quarter of 2024. This led to a total net impact of Bt1.5 billion related to the closure and sale of the Robinhood application.
Strategic Impact
The closure of the Robinhood application is expected to alleviate SCB’s operational burden by eliminating annual losses of Bt2 billion, as well as ongoing operating expenses associated with the application.
Outlook
Despite the challenges, SCB is positioned for future growth with a solid profit base and strategic restructuring aimed at improving efficiency and profitability.
Conclusion
SCB remains a key player in the Thai banking sector, demonstrating robust profit growth and strategic initiatives to optimize operations while navigating market challenges effectively.
