Krungsri Securities has issued an analysis of SCB X Public Company Limited, or SCB, viewing it as a bank with a standout dividend and one of the highest dividend yields in the banking sector at 7% per year, with interest rates no longer trending lower. For third-quarter results, the research team expects SCB to report net profit of 10.8 billion baht, down 10% from the same period a year earlier and down 3% from the previous quarter, as interest income falls on a lower net interest margin of 3.05%, compared with 3.44% in the third quarter of last year, following policy rate cuts. Non-interest income fell 3% from a year earlier and 2% from the previous quarter on lower fair-value-through-profit-or-loss investments, along with higher operating expenses. As for the fourth-quarter profit outlook, the research team expects SCB's profit to rise from the same period a year earlier on growth in wealth management income, but to decline from the previous quarter on operating expenses, since the fourth quarter carries the highest expenses of the year. On investment strategy, the research team maintains a hold rating on SCB with a 2027 target price of 155 baht.
SCB X Public Company LimitedKrungsri expects SCB's Q3 net profit to fall 10% y/y to 10.8 billion baht on lower net interest margin and non-interest income.
