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(Updates with Kasikornbank’s earnings in sixth paragraph.)
Oct. 19 (Bloomberg) -- Siam Commercial Bank Pcl, Thailand’s third-biggest by assets, said third-quarter profit rose 29 percent on higher income from loans and underwriting.
Net income was 8.35 billion baht ($272.7 million), or 2.46 baht per share, compared with a restated 6.48 billion baht, or 1.91 baht a share, a year earlier, the company said today in a regulatory filing.
Thai banks are reporting earnings this week as the central bank kept the benchmark interest rate unchanged after raising interest rates seven straight times. Thailand’s worst floods in more than half a century and weakening global growth threaten to curb output and reduce demand for the nation’s exports.
“Our current attention is on alleviating the tremendous hardship that the floods have inflicted, and indeed continue to inflict, on our customers across all segments and others in the communities that lie within the affected areas,” Vichit Suraphongchai, Siam Commercial’s chairman, said in a statement.
The three-month-long flooding disaster has killed more than 300 people and closed about 1,000 factories operated by companies including Hana Microelectronics Pcl, the country’s biggest semiconductor packager, and Western Digital Corp.
Kasikornbank Pcl, the fourth-largest lender, said today third-quarter profit jumped 41 percent to 7.76 billion baht, boosted by lending growth. That’s higher than an analyst estimate of 7 billion baht. Interest income rose 40 percent from a year earlier, according to a filing to the Thai exchange.
Siam Commercial’s net interest income, or the difference between what the bank makes from lending and pays on deposits, rose 34 percent to 13.5 billion baht, while net income from fees and services climbed 12 percent to 5.4 billion baht.
The increase in net interest income was due to a 25 percent expansion of the bank’s loan portfolio and “the impact of the rising interest rate environment,” Siam Commercial said.
Siam Commercial’s shares dropped 5 percent to 105 baht at the market close, the lowest level since Oct. 6.
Nonperforming loans fell to 37.2 billion baht, or 2.69 percent of total lending, compared with 38.7 billion baht, or 3.25 percent of total loans, as of the end of 2010, according to the statement.
Third-quarter earnings included income from Siam Industrial Credit Pcl, which was acquired by Siam Commercial earlier this year, the Bangkok-based lender said.
--Editors: Tony Jordan, Ryan Woo.
To contact the reporter on this story: Anuchit Nguyen in Bangkok at firstname.lastname@example.org
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