HomeBusinessSCBX annouced 2022 net profit of baht 37.5 billion

SCBX annouced 2022 net profit of baht 37.5 billion

SCB X Public Company Limited (SCBX) reported consolidated net profit of Baht 37.5 billion in 2022, a 5.5% increase yoy, mainly due to strong net interest income growth, cost management discipline, and lower provisions. Nevertheless, it was offset by a decline in the fee and investment-related income.

For 2022, net interest income rose 13.3% yoy to Baht 107.9 billion, following an increase in net interest margin under the growth strategy towards quality loans and upward interest rate trend. Meanwhile, overall loans expanded 3.3% from the previous year. 

Fee and other income stood at Baht 44.9 billion, down 4.7% yoy due to the slowdown in wealth management business. Investment and trading income also dropped 79.1% yoy to Baht 1.7 billion due to extreme volatility in the money and capital markets.

Operating expenses increased 9.9% yoy to Baht 69.9 billion, mainly on the back of increasing business activities and restructuring efforts under the ‘Mothership’ strategy. However, the cost-to-income ratio remained at an appropriate level of 45.2%, a slight increase from the previous year. 

The Company set aside provisions of Baht 33.8 billion for 2022, down 19.5% yoy, thanks to proactive measures and prudent approach to credit quality management implemented since the onset of the COVID-19 pandemic as well as the recovery in business sectors. The non-performing loan (NPL) coverage ratio increased to 159.7%.

The NPL ratio eased to 3.34% at the end of 2022, from 3.79% at the end of 2021, largely due to a comprehensive debt restructuring program under the Bank of Thailand’s framework and effective NPL management. The capital adequacy ratio also remained strong at 18.9%.

Arthid Nanthawithaya, Chief Executive Officer of SCBX, commented: “In 2022, SCBX completed the restructuring efforts under the ‘Mothership’ strategy and we’re ready to move towards our goal to become a technology company with steady growth. In the next 1-2 years, we will emphasize leapfrogging of digital-lending businesses, following preparations of talents and business strategies. For SCB Bank, we will continue to proceed with the ‘Be a Better Bank’ strategy, to achieve quality growth at a lower cost base.

Our technology and digital asset businesses will adopt a prudent investment approach, taking into consideration market conditions. Regarding financial performance in 2022, SCBX continued its growth momentum and maintained financial stability by adopting appropriate risk management under extreme volatility in the capital market. Looking forward, we believe SCBX and its portfolio companies can enjoy significant growth potential thanks to the ‘Mothership’ strategy and overall business recovery.”

SCBX EGM resolution gives green light to the issuance of up to 100 billion baht

SCBX is poised to continue to grow and expand the businesses under its “Mothership” strategy after receiving approval from the Extraordinary General Meeting of Shareholders (EGM) no. 1/2023 held on January 19, 2023 for the issuance and sale of debt securities in an amount of not more than 100 billion baht or the equivalent in other currencies over a five-year period to support investments according to its business plans.  The plan will focus on expanding consumer finance, digital assets, and platform business with high growth potential, including investments in blockchain technology and climate tech, to drive the business of the future, enhance competitiveness, and support regional expansion in order to lead the company to unrestricted growth.

Arthid stated, “The approval of the issuance of debt securities not exceeding 100 billion baht or the equivalent in other currencies of SCBX reflects the shareholders’ confidence in the company’s strategy and financial strength, providing the company with funding flexibility to carry out its business plan.  SCBX will focus primarily on growing and improving its three most promising areas of business, comprising consumer finance, digital assets, and platforms. To prepare for the expansion of SCBX to the regional level, the funds will also be utilized to invest in technologies that will be the backbone of future business, such as blockchain and climate tech.”

“In executing bond issuance, we will take into consideration capital market conditions and annual investment opportunities to ensure the most optimal funding arrangement. The company would like to express its gratitude to its shareholders for their continued confidence in the strategy and operational plan to establish the SCBX Group as a regional financial technology company capable of competing on a global scale, delivering superior returns to shareholders over the long term, and steering the country to sustainable growth.”

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