SCB X, the financial technology conglomerate and holding company of Siam Commercial Bank (SCB), plans to strengthen its business continuity plan to address earthquake risks.
Following the recent tremors in Bangkok and unexpected events both domestically and internationally, SCB X wants to upgrade its business continuity plan to include earthquakes, said chief executive Arthid Nanthawithaya during a shareholder meeting last Friday.
For its real estate clients, SCB plans to emphasise construction standards and quality when extending project financing, he said.
The bank will continue to provide financial support for high-rise property developments, but backed by more robust risk management measures, said Mr Arthid.
While the disaster temporarily dampened homebuyer sentiment, particularly for high-rise condos, a steady stream of buyers is expected over the medium to long term, he said.
For example, Japan experiences earthquakes more frequently than most countries, yet demand for high-rise residential buildings remains strong, aligned with lifestyle shifts among younger generations, said Mr Arthid.
Meanwhile, SCB X and SCB are monitoring the impact of the US's reciprocal tariff on Thai imports. The companies are assessing the implications at both the macroeconomic and microeconomic levels, including the effects on SCB's clients that export and the Thai government's response measures to mitigate the risk.
"Initially we expect the tariffs will have both positive and negative effects on our export customers, but a full evaluation will take more time. As part of our risk diversification strategy, the bank maintains a balanced loan portfolio across various industries," he said.
As a result of the tariff impact, the Bank of Thailand is expected to gradually cut its policy interest rate, and the banking sector is likely to follow. Even with lower interest rates, SCB X and SCB are confident in their ability to manage interest income and maintain profitability, said Mr Arthid.
While declining lending rates may reduce SCB Group's interest income, they will also ease the financial burden on customers, especially those struggling with debt repayment, helping to maintain asset quality and control non-performing loans during this fragile period, he said.
Mr Arthid said the US reciprocal tariffs on global imports have affected financial and capital markets worldwide, including the Thai bourse. SCB X has no plans for a stock buyback to support its share price, but is exploring alternative capital management strategies, he said. SCB X's dividend payout ratio is 80%, the highest in the financial sector.
