SCBX Posts Strong First-Quarter Profits Amidst Tariff Concerns

The Thai financial conglomerate credits efficient cost management and careful balance sheet handling for the 10.8% year-on-year increase in net profit

 

SCB X Public Company Limited (SCBX), a leading Thai financial group, has announced a consolidated net profit of 12.502 billion baht for the first quarter of 2025, marking a healthy 10.8% increase compared to the same period last year. 

 

The company attributed this robust performance to effective cost control measures and prudent management of its balance sheet.

 

For the first quarter of 2025, SCBX reported net interest income of 31.047 billion baht, a modest 2.2% year-on-year decrease.

 

This was primarily due to a tightening of the net interest margin (NIM) and a slight 1% contraction in the overall loan portfolio, reflecting a cautious approach to new loan approvals.

 

Fee and other income saw a marginal increase of 0.7% year-on-year, reaching 10.251 billion baht, driven by growth in wealth management fees, although income from bancassurance and lending-related fees experienced a downturn.

 

Operating expenses for the quarter were significantly lower, falling by 5.3% year-on-year to 17.140 billion baht. This reduction was attributed to successful cost containment strategies and the cessation of the Robinhood platform business in 2024. Consequently, the company's cost-to-income ratio improved to 39.9%.
 

  

Provisions for potential losses also decreased by 6.2% year-on-year. This was largely due to an improvement in asset quality across both SCB Bank and its newer "Gen 2" businesses, particularly the CardX division.

 

Notably, these provisions include a buffer against potential adverse impacts from anticipated US tariffs, based on initial assessments. The non-performing loan (NPL) coverage ratio remained strong at 156%.

 

Overall asset quality at SCBX was reported to be well-managed, with the NPL ratio standing at 3.45% at the end of the first quarter of 2025, down from 3.52% in the previous year. The company's capital adequacy ratio remained robust at 18.8%.

 

Arthid Nanthawithaya, chief executive officer of SCBX, commented on the results amidst a challenging economic backdrop.

 


“The year commenced with considerable headwinds, ranging from the earthquake to the significant uncertainty surrounding potential US tariff escalations. The Company acted swiftly to implement measures aimed at assisting retail and SME customers affected by the earthquake, including offering loan payment deferrals and financial support for housing repairs and business recovery. We anticipate the overall impact on the SCBX group’s businesses to be limited.”
 
 

Arthid further noted the potential broader economic impact of the US tariffs, estimating a reduction in Thailand's GDP this year to 1.5%, with the possibility of more severe consequences.

 

He stated that SCBX had proactively prepared for this by closely monitoring customer situations to assess both direct and indirect impacts and working with clients to develop appropriate solutions.

 

“Despite these challenges, our first-quarter 2025 results demonstrate a resilient performance, underpinned by effective cost control and prudent asset quality management. During this quarter, the SCBX group’s cost-to-income ratio was below the industry average, while our Gen 2 and Gen 3 businesses continued to deliver increasing profits, complementing the performance of our core Gen 1 business. The Company has announced a dividend payment of 80% from last year's performance and remains committed to maintaining a strong financial position to support our customers and the Thai economy, while consistently enhancing shareholder value,” he stated.

(2025/04/21-00:00)