SCB X Public Company Limited (SCB) Expected to See Profit Increase in Q2 2023, Analysts Say

SCB Expects Profit to Exceed 11.3 Billion Baht as Loans Continue to Grow

June 23, 2023 – Mr. Adisorn Mungpalchon, Securities Investment Analyst at Phillip Securities (Thailand) Public Company Limited, has analyzed SCB X Public Company Limited or SCB and predicts a profit of 11.3 billion baht in the second quarter of 2023. This represents a 12.5% increase compared to the same period last year and a 2.8% increase compared to the previous quarter. The company is expected to continue its growth trajectory, with the main driver being the increase in interest income due to the raising of interest rates on loans. The positive outlook also extends to the profit from investments, which has a chance to increase as well.

SCB’s loan portfolio has also shown impressive growth, with a 1.1% increase in May compared to the previous month. Analysts expect this growth to continue in June. However, there is a concern that the non-performing loan (NPL) ratio may increase in this quarter compared to the previous quarter. SCB’s NPL ratio dropped to 3.3%, which is lower than most banks.

Analysts maintain their profit forecast for SCB in 2023 at 39.6 billion baht, a 5.4% increase compared to the same period last year. This growth is expected to come from increased interest income following the increase in loans and loan interest rates. The basic price of SCB’s stock remains at 129 baht, with a difference between the current stock price. Additionally, SCB has adjusted its payout ratio to 60% last year and is expected to pay a dividend of 7.05 baht per share in 2023. This represents a high dividend yield of 6.6%, making it a recommended buy.

Investors and analysts are optimistic about SCB’s performance in the second quarter of 2023, with expectations of strong profits and continued loan growth. The company’s strategic focus on increasing interest income and managing NPLs has positioned it well for future success.

What factors are driving SCB’s projected profit growth in the second quarter of 2023?

SCB Expects Profit to Surpass 11.3 Billion Baht as Loan Surge Persists

June 23, 2023 – According to Mr. Adisorn Mungpalchon, an esteemed Securities Investment Analyst at Phillip Securities (Thailand) Public Company Limited, SCB X Public Company Limited, or SCB, is poised to achieve a profit of 11.3 billion baht in the second quarter of 2023. This signifies a remarkable 12.5% increase compared to the same period last year and a 2.8% surge compared to the previous quarter. SCB’s growth trajectory is anticipated to continue, primarily driven by the hike in interest income as loan interest rates rise. The optimistic outlook extends to potential profit growth from investments as well.

Notably, SCB’s loan portfolio has showcased impressive expansion, with a notable 1.1% increase in May compared to the previous month. Analysts confidently anticipate this growth to continue throughout June. Nonetheless, concerns linger regarding the possibility of the non-performing loan (NPL) ratio increasing this quarter in comparison to the previous quarter. It is worth highlighting, however, that SCB’s NPL ratio currently stands at an impressive 3.3%, which is lower than its counterparts in the banking industry.

Analysts persist in upholding their profit forecast for SCB in 2023 at 39.6 billion baht, a commendable 5.4% increase in comparison to the same period last year. This growth is expected to stem from enhanced interest income resulting from increased loans and loan interest rates. The basic price of SCB’s stock remains steady at 129 baht, with a marginal variance from the present stock price. Furthermore, SCB adjusted its payout ratio to 60% last year and is predicted to deliver a dividend of 7.05 baht per share in 2023. This translates to an exceptional dividend yield of 6.6%, designating it as a highly recommended investment opportunity.

Investors and analysts alike hold a positive outlook for SCB’s performance in the second quarter of 2023, anticipating robust profits and sustained loan growth. SCB’s strategic focus on augmenting interest income and effectively managing NPLs has positioned the company optimally for future success.