Earnings Report /
Thailand

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

  • Earnings were in line with our expectation

  • SCB reported a 2Q22 net profit of Bt10.1bn

  • Lending increased 1.0% QoQ during 2Q22

Poramet Tongbua
Poramet Tongbua

Equity Research Analyst

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Bualuang Securities
22 July 2022

We have a BUY call on SCB to a YE22 target price of Bt141, premised on loan growth (driven by corporate and retail business), a fatter NIM, lighter LLPs, and good cost management. The stock currently trades at a cheap 2022 PER of 7.7x and our dividend yield assumption is 5.3%.

Earnings were in line with our expectation

SCB reported a 2Q22 net profit of Bt10.1bn, up 14% YoY but down 1% QoQ. The result was in line with our estimate (and the Bloomberg consensus). Pre-provision operating profit came to Bt22.8bn, up by 8% YoY and 5% QoQ. 1H22 earnings comprise 49.5% of our full-year forecast of Bt40.9bn.