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Transcript
SIAM COMMERCIAL BANK PCL.
3Q16 Financial Results
Analyst Meeting Presentation
November 1st, 2016
IMPORTANT DISCLAIMER:
Information contained in this document has been prepared from several sources and the Bank does not confirm the accuracy and completeness of such
data, particularly where the data is sourced from outside the Bank. In addition, any forward looking statements are subject to change as a result of
market conditions and the final result may be different to that indicated. The Bank makes no representation or warranty of any type whatsoever on the
accuracy or completion of the information contained herein.
Siam Commercial Bank PCL. | Analyst Meeting Presentation | November 1 st, 2016
Page 1 / 24
Agenda
Page
1.
Review of 3Q16 Results
3-16
2.
Economic Indicators and
2016 Strategy & Outlook
Siam Commercial Bank PCL. | Analyst Meeting Presentation | November 1 st, 2016
18-24
Page 2 / 24
9M16 – Modest financial results amid slow economic recovery
PROVI
SIONS
LOANS
INCOME/
COST
PROFITABILITY
2015
Actual
1/
2/
3/
1/
ROE, %
15.9%
ROA, %
1.72%
Net interest margin, %
1/
3.18%
2/
Non-NII growth, yoy%
16.0%
Cost/Income ratio
35.6%
1/
2016
Targets
9M16
Actual
9M16 Results
(Highlights)
15-18%
14.7%
1.6-1.9%
1.67%
9M16 net profit was Baht 34.9
billion, a 1.4% yoy decrease due
to a sharp drop in gain on
investments.
3.1-3.3%
3/
3.29%
3/
4.0-6.0%
-2.1%
38-40%
36.5%
3.2%
4.0-6.0%
5.3%
NPLs (gross), %
2.89%
≤3.0%
2.85%
Credit cost, bps
165
Total loan growth, yoy%
9M16 Results
Consolidated
115-125
- NIM was in line with the full year
guidance of 3.1-3.3% despite
being under pressure by the cuts
in lending rates.
- Non-NII3/ declined by 2.1% yoy
mainly from lower net trading and
FX income, and higher net
insurance claims. However, net fee
and service income increased by
5.2% yoy.
- Credit costs in 9M16 was at
146bps of total loans, a relatively
high level to maintain NPL
coverage ratio at around 130%.
146
Includes a one-time expense from a fraud case in 1Q15, prior to any recoveries, the substantial additional provisions in 3Q15, and one-time gains from the sale of equity
investments in 3Q15. Excluding these items, the 2015 ROE and ROA would stand at 17.2% and 1.9%, respectively, and cost-to-income ratio would stand at 36.6%.
Includes the gain on the disposal of the Bank’s investment in its non-life subsidiary in 2Q14 and one-time gains from the sale of equity investments in 3Q15. Excluding
these gains, the 2015 non-NII growth would stand at 3.6% yoy.
Exclude the large gains from the sale of equity investments in 3Q15. If included, 9M16 Non-NII would decline by 19.4% yoy.
Siam Commercial Bank PCL. | Analyst Meeting Presentation | November 1 st, 2016
Page 3 / 24
3Q16 net profit increased yoy as a result of higher net interest
income, higher net fee income, and lower provisions
3Q16 Net Profit
The yoy increase in 3Q16 net profit (+27.9% yoy) was mainly due to higher net interest income, higher net fee income,
and significantly lower provisions. Operating profit decreased by 21.7% yoy due to significantly lower gains on
investments despite an increase in both net interest income and net fee and service income.
+27.9% yoy
- 10.0% qoq
Net Profit
(Baht billion)
11.8
9.0
3Q15
4Q15
Operating profit
(Baht billion)
27.4
12.8
10.5
1Q16
2Q16
1/
2/
3Q16
-21.7% yoy
-12.1% qoq
15.8%
3Q15
4Q15
13.4%
1Q16
16.0%
14.3%
2Q16
3Q16
1.8%
1.7%
2Q16
3Q16
ROA
(Percentage)
2/
19.5
1/
11.5
12.3%
24.4
3Q15
ROE
(Percentage)
4Q15
1.3%
3Q16
3Q15
18.1
1Q16
2Q16
1.7%
21.4
4Q15
1.5%
1Q16
Net profit before impairment provisions, non-controlling interest, and taxes.
Excluding the large gains on investment in 3Q15, operating profit would decreased slightly by 0.8% yoy.
Siam Commercial Bank PCL. | Analyst Meeting Presentation | November 1 st, 2016
Page 4 / 24
NII
NII increased due to the continued reduction in cost of deposits
The increase in net interest income of 10.7% yoy was mainly driven by the Bank’s proactive strategy in managing its cost
of deposits as well as loan growth of 5.3% over the past year.
Net Interest Income
(Baht billion)
+10.7% yoy
+2.1% qoq
Yield of Earning Assets, NIM and Cost of Funds
(Percentage)
22.2
21.4
21.7
21.8
20.1
Yield on
Earning Assets 4.57%1/
4.66%
4.55%
4.51%
4.55%
Net Interest 3.07%1/
Margin
3.28%
3.24%
3.24%
3.33%
1.83%
1.69%
1.61%
1.58%
1.54%
3Q15
4Q15
1Q16
2Q16
3Q16
Cost of Funds
3Q15
4Q15
1Q16
2Q16
3Q16
Yield on
Loans
5.72%
5.83%
5.71%
5.63%
5.55%
Cost of
Deposits
1.82%
1.66%
1.58%
1.52%
1.47%
1/
1/
For 3Q15, the drop in yield and NIM was mostly the result of the
reversal of accrued interest on two large new NPLs (SSI and SSI-UK).
Siam Commercial Bank PCL. | Analyst Meeting Presentation | November 1 st, 2016
Page 5 / 24
Credit Cycle
Given lackluster economic momentum, the Bank expects
moderate loan demand in 2016
Loan Growth (%yoy)
SCB’s acquisition
of SCB Leasing1/
and market share
gains in SME
segment
Global financial
crisis; SCB
tightened credit
underwriting
standards
Outcome of SCB’s
market share growth
strategies in
mortgage, auto and
SME segment
Sharply lower
loan growth as a
result of the
economic
slowdown
30.0%
SCB
Loan Growth
20.0%
Expected Bank/
sector loan growth
10.0%
Banking Sector
Loan Growth
0.0%
4.3%
4-6%
3.2%
3-4%
1/
2016F
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
-10.0%
In 2006, the Bank increased its holding in SCB Leasing (then Thai Panich Leasing PCL) from 37.6% to 95.5%.
Source: Bank of Thailand’s website (for sector loans growth)
Siam Commercial Bank PCL. | Analyst Meeting Presentation | November 1 st, 2016
Page 6 / 24
Loan Growth
Loan growth yoy mainly driven by the corporate, housing
loans, and SME segment
On a yoy basis overall loan growth was mainly driven by the corporate segment, housing loans, and SME segment, while
automobile loans declined. Corporate and housing loans contributed to the growth qoq.
Loans1/
(Baht billion)
1,815
1,833
+5.3% yoy
+2.7% qoq
1,839
1,862
1,912
Corporate Loans1/ (Baht billion)
SME Loans1/ (Baht billion)
Market Share ‘Top 3’ +8.5% yoy Market Share #4
+2.7% yoy
+7.5% qoq
-0.4% qoq
703
648
3Q15
4Q15
1Q16
2Q16
3Q16
Loans Breakdown1/ as at Sep 30, 2016
SME
19.0%
Corporate (19.5%)
36.7%
(35.7%)
Retail
44.3%
(44.8%)
646
646
353
654
357
362
364
363
3Q15 4Q15 1Q16 2Q16 3Q16
3Q15 4Q15 1Q16 2Q16 3Q16
Retail Loans1/
(Baht billion)
814 830 831 844 846
79
85
80
81
79
166
169
169
167
165
596
602
Market share #1
+4.0% yoy, +0.3% qoq
Others2/ +1.0% yoy, -1.7% qoq
Auto3/ -0.9% yoy, -1.3% qoq
(market share #3)
569
576
582
Mortgage4/ +5.9% yoy, +1.1% qoq
(market share #1)
( ) : Loan breakdown as at Sep 30, 2015
3Q15 4Q15 1Q16 2Q16 3Q16
1/ Includes loans classified as NPLs
2/ Others include mainly credit cards and unsecured consumer loans
3/ Market share among the top 5 auto loan lenders, excluding ‘captive’ finance companies, as of September 2016
4/ Market share excludes the Government Housing Bank
Siam Commercial Bank PCL. | Analyst Meeting Presentation | November 1 st, 2016
Page 7 / 24
Loan Yield
Loan yield declined qoq from lending rate cuts
The average loan yield in 3Q16 fell to 5.55% from 5.72% in 3Q15 and 5.63% in 2Q16, in line with lending rate cuts.
Loan breakdown
(Percentage)
3Q15
5.72%
5.63%
5.55%
Change qoq
-19 bps
-8 bps
-8 bps
Corporate
Yield %
4.03%
4.20%
4.14%
SME
Yield %
6.78%
6.28%
6.20%
Mortgage
Yield %
5.79%
5.58%
5.43%
Auto Loans
Yield %
6.21%
6.30%
6.42%
4%
9%
5%
9%
4%
9%
4%
9%
4%
9%
Total Loans
Mortgage
32%
31%
32%
32%
32%
SME
19%
20%
20%
20%
19%
36%
35%
35%
35%
37%
3Q15
4Q15
1Q16
2Q16
3Q16
3Q16
Yield %
Others1/
Auto loans
Corporate
2Q16 2/
1/
Others include mainly credit cards and unsecured consumer loans
Shows change vs 1Q16
Green font indicates improvement in yield % and an increase in qoq change in yield % from the previous period.
Red font indicates deterioration in yield % and a decrease in qoq change in yield % from the previous period.
2/
Siam Commercial Bank PCL. | Analyst Meeting Presentation | November 1 st, 2016
Page 8 / 24
Asset Quality
New NPL formation was down yoy and rose slightly qoq
Special mention loans stood at Baht 36.0 billion at
the end of September 2016, up by 6.1% from the end
of September 2015 and by 6.7% from the end of
June 2016. The qoq increase was mainly from a few
large corporate customers.
Special Mention
(Baht billion)
In 3Q16, new NPL formation was at 0.50%, a sharp drop
from 1.18%1/ in 3Q15 but a slight increase from 0.40% in
2Q16. The qoq increase was mainly from a few large
corporate customers and housing loans.
Total
Loans
NPL %
3.02%
New NPL %
NPL %
2.85%
1.18%
0.40%
0.50%
3.85%
3.29%
3.36%
2.28%1/
0.00%
0.28%
NPL %
5.07%
5.08%
5.21%
New NPL %
0.94%
0.60%
0.70%
NPL %
2.58%
2.15%
2.42%
New NPL %
0.68%
0.65%
0.68%
NPL %
2.03%
1.85%
1.86%
New NPL %
0.58%
0.43%
0.40%
New NPL %
33.5
30.4
33.7
36.0
3Q16
2.77%
Corporate
33.9
2Q162/
3Q15
+6.1% yoy
+6.7% qoq
1/
SME
Mortgage
3Q15
4Q15
1Q16
2Q16
3Q16
Auto
Loans
1/
Excluding new NPL of SSI-UK which has been written off in September
2015. If included new NPL formation for total loans in 3Q15 would be
1.79% and for corporate would be 4.21%.
2/ Shows change vs 1Q16
Green / Red fonts indicate decrease / increase in new NPL formation as a %
to total loans from the previous period.
Siam Commercial Bank PCL. | Analyst Meeting Presentation | November 1 st, 2016
Page 9 / 24
Asset Quality
NPL ratio increased slightly qoq due to slow economy
The non-performing loan ratio this quarter stood at 2.85%,
a slight decrease from 2.89% at the end of 2015 but an
increase from 2.77% of the previous quarter due to a slow
economic recovery.
Loan loss provisions for this quarter amounted to Baht
7,012 million, driving the coverage ratio up to 128.9%
from 109.8% in 2015 but slightly down from 130.0% in
2Q16.
Non-Performing Loans, Gross NPL Ratio, and
NPL Coverage Ratio (Baht billion, %)
Provisions
(Consolidated, Baht billion)
-56.2% yoy
-17.6% qoq
16.0
NPL Coverage Ratio
100.8%
3.02%
109.8%
2.89%
122.8%
130.0%
2.64%
2.77%
2.85%
*
61.4
59.0
55.1
3Q15
4Q15
1Q16
2Q16
3Q16
109
184
149
3Q15
4Q15
353 *
109
About 243 bps of the credit costs relate to SSI & SSI-UK
-2.9% yoy
-10.2% qoq
Restructured Loans
(Consolidated, Baht billion)
Gross NPL%
62.2
7.0
5.0
128.9%
Credit
cost (bps)
8.5
5.0
1Q16
57.1
2Q16
NonPerforming
Loans
-1.4% yoy
+7.5% qoq
35.2
31.8
3Q15
3Q16
Siam Commercial Bank PCL. | Analyst Meeting Presentation | November
1 st,
2016
33.0
4Q15
34.4
30.9
1Q16
2Q16
3Q16
Page 10 / 24
Non-NII decreased yoy from the absence of large gains on
investment booked in 3Q15
Non-NII
Non-interest income decreased by 37.6% from the third quarter of last year, primarily a result of large gains from the sale
of equity investment booked in 3Q15. Excluding these large gains on investment in 3Q15, non-interest income would
have increased by 4.3% yoy, mainly driven by higher net fee and service income from corporate finance as well as
higher net trading and FX income.
-37.6% yoy
-20.9% qoq
Non-Interest Income
(Baht billion)
19.2
8.3
15.1
1/
10.9
1.6
2.0
6.8
6.9
2.1
1/
2/
1.2
8.0
1.7
7.0
1.4
12.0
6.6
1.7
Gain (Loss) on Investment
Other income2/
Gain on trading and FX
Net fee income
7.6
6.0
1.2
-1.9
Net insurance premium
3Q15
4Q15
1Q16
2Q16
3Q16
49%
34%
27%
41%
35%
Non-NII % to total
income
23%
25%
17%
34%
26%
Net fee and net insurance
premium % to total
income
Gain (Loss) on investment includes one-time gains from the sale of equity investments in 3Q15 to mitigate the impact from additional SSI related provisions.
Other income includes income from equity interest in affiliated companies, dividend income, and other operating income.
Green / Red fonts indicate increase / decrease in Non-NII % to total income and Net fee and net insurance premium % to total income from the previous
period.
Siam Commercial Bank PCL. | Analyst Meeting Presentation | November 1 st, 2016
Page 11 / 24
Fee Income
Higher net fee income was driven by corporate segment
Net fee income increased by 12.5% yoy mainly from corporate finance fees, bancassurance fees and mutual fund fees.
On a quarter-on-quarter basis, net fee income rose by 15.2% qoq mainly from corporate finance fees, brokerage fees
and loan-related fees.
Net Fee Income by segment (Baht billion)
7.6
3Q15
4Q15
1Q16
32%
0.5
6%
19%
1.3
4.8
2Q16
62%
4.7
8%
0.6
73%
24%
1.7
9%
22%
8%
4.6
6.6
67%
4.6
0.6
70%
24%
8%
0.6
68%
1.6
1.5
+12.5% yoy
+15.2% qoq
7.0
6.9
6.8
Net Fee Income Breakdown (Percentage)
2.4
0.5
4.7
Corporate
+50.4% yoy
+93.5% qoq
17.7
17.0
15.9
16.1
15.2
Others1/
12.6
11.3
13.8
9.5
12.0
Loan related fee
17.1
17.9
16.9
21.4
19.2
Mutual fund
4.6
6.8
6.7
7.4
6.2
18.4
16.5
16.7
14.9
22.7
GMTS2/
29.6
30.5
30.0
30.7
24.7
Bank cards
3Q15
4Q15
1Q16
2Q16
3Q16
SME
-15.0% yoy
-8.5% qoq
Retail
Bancassurance fee
+2.5% yoy
-2.5% qoq
3Q16
1/
% Share
2/
Others include brokerage fee, fund transfer, remittance, etc.
GMTS stands for Global Markets and Transaction Services, which includes
cash management, trade finance, corporate finance and corporate trust.
Siam Commercial Bank PCL. | Analyst Meeting Presentation | November 1 st, 2016
Page 12 / 24
Deposit
Growth
Deposits rose qoq and CASA remained high
As of September 30, 2016, total deposits stood at Baht 1,887 billion, a 2.1% decrease from the end of September 2015
but an increase by 0.9% from the end of June 2016, and was relatively flat from the end of 2015. The yoy decline was
mainly from the maturity of high-cost fixed deposits during the period along with the Bank’s strategy to increase low-cost
deposits. The qoq increase was from the launch of fixed deposit campaigns which resulted in a decline in CASA qoq.
-2.1% yoy
+0.9% qoq
Deposits
(Baht billion)
1,928
54
1,891
57
1,104
1,106
770
3Q15
1,951
1,871
59
1,887
58
1,154
1,110
1,087
728
736
702
743
4Q15
1Q16
2Q16
3Q16
62.3%
62.5%
60.7%
61
Current
Savings
Fixed
CASA – Current & Savings Accounts (%)
60.1%
61.5%
Siam Commercial Bank PCL. | Analyst Meeting Presentation | November 1 st, 2016
Page 13 / 24
The LD ratio was temporarily above the Bank’s target range but
the liquidity level was still high at 25%
As loans grew 5.3% yoy while deposits fell 2.1% yoy, the
loan-to-deposit ratio on a consolidated basis rose to
101.3% at the end of September 2016 from 94.1% at the
end of September 2015.
Loan to Deposit Ratio
The Bank currently maintains a daily liquidity ratio of
20% or higher as measured by total liquid assets (at a
bank-only level) to total deposits. If the ratio falls below
20%, corrective action will be immediately considered.
Liquidity Ratio (Bank-only)
102%
31.9%
101.3%
31%
99.5%
100%
28%
98%
Liquidity
97.0%
28.6%
28.8%
27.6%
25%
96%
25.0%
22%
94%
94.2%
94.1%
20%
92%
19%
3Q15
4Q15
1Q16
2Q16
3Q16
3Q15
4Q15
1Q16
2Q16
3Q16
Liquid assets primarily comprise cash, deposits, bilateral
repo with the Bank of Thailand and investment in
government securities.
Siam Commercial Bank PCL. | Analyst Meeting Presentation | November 1 st, 2016
Page 14 / 24
Cost-to-income ratio increased but remained relatively low
Cost Efficiency
Operating expenses rose by 7.4% yoy and 2.0% qoq due to higher staff costs (+10.8% yoy), and higher premises and
equipment expenses (+6.1% yoy). Cost-to-income ratio in 3Q16 increased to 37.3% from 33.9% in 2Q16.
Operating Expenses
(Baht billion)
+7.4% yoy
+2.0% qoq
Cost-to-Income Ratio
(Percentage)
39.5%
12.7
11.9
12.5
38.9%
37.3%
12.8
2/
33.9%
11.5
1/
30.3%
3Q15
1/
2/
4Q15
1Q16
2Q16
3Q16
3Q15
4Q15
1Q16
2Q16
3Q16
Includes large investment gains from the sale of equities in the Bank’s portfolio. Excluding these gains, the cost-to-income ratio would stand at
37.6%.
Includes the policy reserve reversal at SCB Life. Excluding this item, the cost-to-income ratio would stand at 38.4%.
Siam Commercial Bank PCL. | Analyst Meeting Presentation | November 1 st, 2016
Page 15 / 24
The solid capital position provides flexibility to support future
growth and provide a cushion against unexpected adverse events
Strong
Capital Base
The Bank believes that its strong capital position in excess of the regulatory minimum requirement, together with
adequate loan loss reserve coverage, are sufficient to help it withstand the impact of unexpected adverse events affecting
the Bank or the Thai economy. Moreover, with this solid capital position the Bank is well prepared to take up any future
growth opportunities.
Capital Adequacy Ratio (Consolidated)
Basel III
17.5%
17.3%
17.2%
17.5%
17.9%
3.2%
3.2%
2.9%
2.9%
2.9%
Tier 2
Common Equity Tier 1 /
Tier 1
14.2%
14.1%
14.2%
1Q16
14.6%
2Q16 1/
15.0%
3Q15
4Q15
CAR
17.3%
17.2%
17.0%
17.2%
17.6%
CET1/ Tier 1
14.0%
14.0%
14.0%
14.2%
14.7%
Regulatory Minimum
CAR
9.125%
Tier 1
6.625%
3Q16
Bank-Only
1/
Excluding net profit for 3Q16 in accordance with regulatory requirements. If included, the total capital ratio and CET1 capital ratio under Basel III on a
bank-only basis would have been 18.1% and 15.2% respectively.
Siam Commercial Bank PCL. | Analyst Meeting Presentation | November 1 st, 2016
Page 16 / 24
Agenda
Page
1.
Review of 3Q16 Results
3-16
2.
Economic Indicators and
2016 Strategy & Outlook
Siam Commercial Bank PCL. | Analyst Meeting Presentation | November 1 st, 2016
18-24
Page 17 / 24
Current economic forecast (SCB Economic Intelligence Center)
Estimates (%)1/
Key drivers
GDP growth
1/
2015
2.8
2016F
3.0
Macro economic
forecast
Comment and Outlook
Key supporting factors are government spending and strong demand
from foreign tourists. Yet the economy is constrained by slow
investment outlays and shrinking exports.
Export USD
growth
-5.7
-2.1
Exports remain weak given low commodity prices and slow demand
for relatively obsolete products especially technology components.
Policy rate
(end period)
1.50
1.50
We expect the MPC to hold the policy rate as the economy and
inflation conditions are improving.
THB/USD
(end period)
36.1
35.5
Thai baht is expected to appreciate slightly from last year as the
Fed’s rate hike is delayed to towards the end of this year.
Loan growth
(sector-wide)
4.3
3.0-4.0
Recent economic recovery does not translate to higher loan growth
as firms slow down their investment given weak demand outlook.
Sources of loan demand are tourism-related industries, government
infrastructure initiatives, and some M&A activities. Working capital
needs are also expected to be low.
Deposit+BE
(sector-wide)
3.0
3.0-4.0
Without signs of recovery in loan demand, industry-wide deposit
accumulation will likely be slow in line with loan growth.
%YOY except for policy rate (% per annum) and exchange rate (THB/USD).
Source: EIC analysis as of September 2016 based on data from the MoC, the BoT and the NESDB
Siam Commercial Bank PCL. | Analyst Meeting Presentation | November 1 st, 2016
Page 18 / 24
Operating environment and business landscape remain challenging in 1H16
Low-growth
environment
Low-growth
macroeconomic
environment has now
become the new norm
Customer shifts
Demographic shift:


Aging population
Gen-Y becoming
mainstream
consumers
Regulatory shifts
Regulatory policies
(e.g., national epayment) increasingly
redefine banking
landscape and how
banks compete
Digital disruption
Digital disruption in
banking industry
reached tipping
point and the pace
will only intensify
Expectation shift:
 Simple & seamless
Fast / instantaneous
24/7
Available on-demand
Secure
Transparent
Siam Commercial Bank PCL. | Analyst Meeting Presentation | November 1 st, 2016
Page 19 / 24
We have embarked on ‘SCB Transformation Program’ to rebuild and
strengthen our core foundation to position us to win over the long term


Under SCB Transformation Program, we set out to rebuild and strengthen our business
foundations (people, process, technology) to uniquely position us to win over long term
─
Phase I focuses on improving customer service and experience at branches and
key touch points with initial impact expected to materialize in 2016
─
We are now entering into a high investment cycle across key foundational areas:
people, process and technology
─
We will rely on a set of ‘leading and lagging indicators’ to monitor the progress of
our transformation program and ensure timely steering along the way
In parallel, we stay committed in driving execution of our business strategy and
strategic initiatives to deliver business performance
─
Actively support Thailand’s economic agenda e.g., national e-payment
─
Stay close to client while proactively managing risk and building sufficient buffer
to absorb volatility
─
Expand client base (esp. SME, wealth, mid-corps) and offerings
─
Enhance capabilities through technologies (e.g., digitization, big data analytics)
─
Cultivate digital innovation through SCB Digital Ventures to leapfrog with new
capabilities and innovation
Siam Commercial Bank PCL. | Analyst Meeting Presentation | November 1 st, 2016
Page 20 / 24
Over time, we will accelerate our growth momentum thru series of new
capabilities / foundations arising from transformation program
Businessas-usual
…
…
…
…
…
…
…
…
Payment
On-boarding
Fast Easy
Transformation
program
Business
intelligence
Business growth acceleration
through new foundation/capabilities
Foundation building
(People / Process / Product / Technology)
2017
Siam Commercial Bank PCL. | Investor Presentation | September 2016
2018
2019
Page 21 / 24
What we expect to see in 2H16
 Completion of transition to the new leadership and organization structure
 SCB Transformation Program achieved momentum and Phase I results
started to materialize
‒ Investments and resources committed to priority foundational (people,
process, product and technology) projects
‒ Improved customer service and experience at branches and key
touch points
‒ New digital capabilities, including Big Data Analytics and Fintech
program, in place
 Strong and robust business performance despite challenging economic
environment
Siam Commercial Bank PCL. | Investor Presentation | September 2016
Page 22 / 24
We aim to cultivate digital innovation through SCB Digital Ventures to
leapfrog with new capabilities and innovation
Siam Commercial Bank PCL. | Investor Presentation | September 2016
Page 23 / 24
Highlights of SCB Digital Ventures’ activities
Venture capital
Accelerator
Lab & Products
Congratulations!
10 Finalists of DVA Batch 0
One of the most active and highly
regarded investors in Thailand and
ASEAN
Internet of Things
PukPao
Coin Machine
Biometrics
Mobile KYC
Strategic partnership with Life.SREDA
a leading FinTech VC fund and
accelerator
Blockchain
Trade Finance
Remittance
The FIRST Thai Bank to invest and
explore in Blockchain Technology
Siam Commercial Bank PCL. | Investor Presentation | September 2016
Machine
Learning (AI)
Call Center
Thai language
voice recognition
Page 24 / 24