SET-listed Siam Commercial Bank's (SCB) unreviewed consolidated net profit for the July-to-September quarter rose 3.7% year-on-year as a sharp decline in impairment charges for loan losses cancelled out the impact from digital banking fee waivers and higher operating expenses for SCB's transformation programme.
The bank posted a quarterly net profit of 10.5 billion baht, according to its statement.
Net interest income rose 4.8% year-on-year to 24.4 billion baht, while non-net interest income -- of which fee-based income is a part -- fell 9.5% from a year earlier to 10.3 billion.
SCB's loan-loss provisions set aside in the third quarter plunged by 32% over the same period last year to 5.13 billion baht.
Total operating expenses in the third quarter of this year increased by 13.6% year-on-year and 4.6% quarter-on-quarter to 16.5 billion baht, driven by implementation of transformation projects, investment in new technology platforms and new customer acquisitions, the bank said.
"Operating expenses were elevated during the high investment cycle to support the transformation programme," SCB said.
The bank's consolidated non-performing loans (NPLs) rose 11.2% to 69.8 billion baht, while its gross NPL ratio increased at a slow pace by 0.05 percentage points to 2.8%.
From January to September, the bank's net profit declined 2.9% from a year before to 33 billion baht.
Bank of Ayudhya's (BAY) unreviewed consolidated third-quarter net profit rose 3.3% from a year earlier to 6.2 billion baht, largely because of an increase in net interest income.
BAY, the country's fifth-largest lender by assets, delivered a 10% year-on-year increase in net interest income during the July-to-September quarter to 19.1 billion baht, driven by 7.5% lending growth from the end of last year to 1.66 trillion, the bank said in a filing with the Stock Exchange of Thailand.
The bank's loan growth was seen across the board, the statement said.
As of Sept 30, BAY's commercial loans, comprising corporate and small business customers, accounted for 52% of the total loan portfolio, while retail lending represented the remaining 48%.
Non-interest income was steady year-on-year at 8.2 billion baht during the third quarter, while net fee and service income increased 1.7% from a year earlier to 5.12 billion.
BAY's net interest margin edged lower to 3.87% for the three months to September from 3.89% over the same period last year because of the higher cost of funds, at 1.82% from 1.64%.
In the third quarter the bank set aside loan-loss provisions amounting to 6.3 billion baht, up 2% from a year ago, it said.
BAY's ratio of gross NPLs to loans outstanding climbed to 2.12% at the end of September from 2.05% at the end of 2017.
SCB shares closed yesterday on the Stock Exchange of Thailand at 143 baht, up one baht, in trade worth 333 million baht.
BAY shares closed at 40.75 baht, unchanged, in trade worth 9.7 million baht.