Earnings Report /
Thailand

Siam Commercial Bank PCL/The: Profit in line with our estimate

  • Result was in line our expectation

  • SCB reported 3Q22 earnings of Bt10.3bn

  • Lending declined 0.5% QoQ during 3Q22

Poramet Tongbua
Poramet Tongbua

Equity Research Analyst

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Bualuang Securities
25 October 2022

We have a BUY call on SCB, premised on loan growth in 2023 (driven by retail business), higher NII (led by subsidiary companies), and lighter tax expenses. Our 2023 earnings forecast is Bt44.9bn, up 10.5% YoY. And we expect SCB to pay a good dividend for 2023 of 4.2%. Our investment horizon rolls over to YE23 with a new target price of Bt142, pegged to a PBV of 0.94x.

Result was in line our expectation

SCB reported 3Q22 earnings of Bt10.3bn, up by 17% YoY and 3.0% QoQ. The result was in line with our projection (and the Bloomberg consensus). Pre-provision operating profit came to Bt22.8bn, up 8% YoY but flattish QoQ. 9M22 earnings comprise 75% of our full-year forecast of Bt40.6bn.