SiamCommercial Bank PCL reported a 3.0% year-over-year decline in netprofit for the second quarter.

The bank said unaudited net profit attributable toshareholders of the bank dropped to 12.82 billion baht, or 3.77 baht per share,from 13.22 billion baht, or 3.89 baht per share, in the prior-year period.

The decline was primarily attributed to a special increasein loan loss provisions as the bank had special profits following a reversal ofpolicy reserves at SCB LifeAssurance PCL.

Net interest income for the second quarter rose to 21.76billion baht from 20.81 billion baht for the prior-year period. Total operatingincome went up slightly to 46.18 billion baht from 46.02 billion baht over thesame period.

At the end of the quarter, the bank's net interest marginwas 3.24%, up from 3.19% a year earlier.

Meanwhile, the nonperforming loan ratio grew to 2.77% from2.64% in the first quarter and 2.22% a year earlier.

The bank set aside loan loss provisions of 8.51 billionbaht, or 1.84% of total loans, a 65.9% increase from the 2015 second quarter.This increase was to raise the coverage ratio to 130% at the end of the secondquarter, from 109.8% at the end of 2015 and 122.8% at the end of the previousquarter.

As of July 20, US$1was equivalent to 35.05 Thai baht.