During a shareholder meeting held by SCB X Public Company Limited (SET: SCB), the company disclosed its struggles with the Net Interest Margin (NIM) amidst the downfall of interest rates, saying the forecast was looking difficult. The prediction depends primarily on trends in interest rates and market liquidity.
When discussing dividend yields, the company reaffirmed its commitment to the dividend payout policy and the appropriate sharing of profits with shareholders, based on investment returns. If the company achieves higher profits, the payout ratio will correspondingly increase, depending on prevailing circumstances.
The meeting approved the dividend payment from the operational performance in the year 2023, with each share getting 10.34 baht, summing up to 34,816 million baht, constituting 80% of the net profit for the year. As the company had previously paid interim dividends at the rate of 2.50 baht per share, this time, the remaining dividend to be paid is 7.84 baht per share, totaling 26,398 million baht.
Further adding to the discussion, SCB’s CEO, Mr. Arthid Nanthawithaya, spoke on the matter of SCB’s debtor, Italian-Thai Development Public Company Limited (SET: ITD). The company has created a debt reserve in this regard to mitigate the foreseeable risks. However, ITD is not currently in the state of Non-Performing Loan (NPL). If ITD’s status were to change in the future, the company already has the necessary preparations in place. The reserves have been set up adequately to withstand such situations.
Regarding the Virtual Bank progression, the company has yet to apply for a license with the Bank of Thailand (BOT) following the announcement of its partnership with two other companies. The Bank of Thailand has granted a time period until September 2024 for the application submissions. SCB is currently working on various detailed plans that will take some time. The principal reason for launching the Virtual Bank is to reach groups of people who have yet to gain access to low-cost capital sources, while the inclusion of Artificial Intelligence (AI) and technology can also enable the Virtual Bank to meet SCB’s targets.
“Following SCB’s acquisition of Home Credit Vietnam Finance Company Limited (HCV) for approximately 31,000 million baht, it is expected that this transaction will gain approval from the regulatory authorities and be completed within the first half of 2025. As for the current year, SCB has no additional plans to acquire overseas businesses,” stated Mr. Arthid.
