Siam Commercial Bank manages to keep 1Q15 earnings flat at THB13bn

Thanks to good cost-control.

It has been noted that although Siam Commercial Bank booked a THB1.5bn one-off charge for KMITL embezzlement case in 1Q15, it managed to keep earnings flat YoY at THB13bn.

According to a research note from Maybank Kim Eng, this was the result of good cost-control. Excluding the large onetime expense, opex was flat YoY.

Loans grew 1.8% QoQ, led by its SME (+2.7%), housing (+2.3%) and wholesale (+2.0%) segments. Despite interest-rate cuts, NIM slid only 3bps QoQ to 3.19%, thanks to lower deposit costs.

Here's more from Maybank Kim Eng:

In contrast, KBANK’s NIM contracted 18bps QoQ in 1Q15. SCB’s non-NII also grew 4% YoY, supported by higher fee income, forex gains and dividend income.

New NPL formation was flat YoY at 0.44%. NPL ratio dipped to 2.39% from 2.41% in 4Q14. SCB sold THB1.7b NPLs in 1Q15.

Special mention loans grew 2.5% QoQ. Credit costs were 80bps vs KBANK’s 104bps. Coverage was flat at 138% vs KBANK’s 140%.