Ben Otto

Siam Commercial Bank PCL's fourth-quarter net profit fell 9.8% on year as a rise in income was offset by Covid-19-related impairment losses.

The Thai lender on Thursday reported a net profit of 4.97 billion baht ($166.1 million) for the quarter. For the full year of 2020, SCB's net profit fell 33% to THB27.22 billion.

Net interest income in the fourth quarter rose 2.9% to THB23.62 billion largely due to lower funding costs and fees, while non-interest income rose 5.6% to THB12.75 billion. The income gains marked a reversal from the third quarter, when both segments fell.

Provisions set aside amid the Covid-19 pandemic, however, rose 48% on year to THB14.23 billion. The bank expects to make more provisions in 2021, though it said the amount had likely already peaked.

SCB's nonperforming loan ratio rose to 3.68% at the end of December, up from 3.32% at the end of September and 3.05% at the end of June. It said it expects NPL ratio to rise to a range of between 4.0% and 4.5% in 2021.

Going forward, the bank noted that "the new wave of the pandemic currently in Thailand [has] added to the uncertainties of economic recovery in 2021." It targets a loan growth of 3%-5% for the year, with flat growth of non-interest income.

Write to Ben Otto at ben.otto@wsj.com

(END) Dow Jones Newswires

01-21-21 1956ET