SCB X Q3 Profit Falls 4% on Bond Losses
SCB X's third-quarter net profit fell 4% to 10.677 billion baht due to bond portfolio losses from rising yields. Core banking revenue stayed resilient with loan growth of 2.4% and fee income exceeding targets, while AI-driven cost cuts reduced expenses 6.3% year-on-year. Asset quality improved for the sixth straight quarter, with Bangkok Bank's NPL ratio dropping to 2.95%.
SCB X reported third-quarter 2026 net profit of 10.677 billion baht, down 4.0% quarter-on-quarter. The primary cause was fair-value losses on investments in debt securities following higher bond yields, while core business income remained stable. Net interest income improved to 27.452 billion baht, up 0.5% from the prior quarter, with net interest margin (NIM) recovering to 3.07%. Loans grew 2.4% from year-end 2025, in line with selective growth strategy led by large corporate and digital lending to Gen Z.
Fee and other income reached 11.498 billion baht, rising 6.2% year-on-year and 12.8% in the first nine months, exceeding the full-year target. Wealth management remained a key driver despite slower customer investment activity after exceptionally high levels in the first half amid range-bound markets. The business benefited from deeper customer relationships, product diversification, and intra-group synergies.
Investment and trading income recorded a loss of 424 million baht versus a 2.552 billion baht gain in the previous quarter, mainly from fair-value losses on debt securities as bond yields increased.
Cost discipline continued through AI and automation, with operating expenses at 16.363 billion baht, down 4.0% quarter-on-quarter and 6.3% year-on-year. The cost-to-income ratio stood at 42.5%, up from the prior quarter due to lower investment income, not higher costs. The nine-month ratio was 42.1%, on track with the full-year target.
Asset quality continued normalizing while provision levels and capital remained strong. Overall asset quality improved for the sixth consecutive quarter through proactive debt management, restructuring, selective NPL sales, and write-offs, plus close monitoring of vulnerable sectors and customers. Bangkok Bank's new NPLs fell significantly from the previous quarter, pushing its NPL ratio down to 2.95%. The group NPL ratio edged up slightly to 3.21% from 3.17%, mainly from AutoX portfolio adjustments as planned. Provisions dropped 13.8% quarter-on-quarter, lowering the credit cost to 1.37%, while the coverage ratio and regulatory capital ratios remained robust.
