By Ben Otto

Siam Commercial Bank PCL's third-quarter net profit surged 90% on higher noninterest income and a reduction in provisions related to the Covid-19 pandemic.

The Thai lender on Thursday posted net profit of 8.82 billion baht ($264.3 million), up from THB4.64 billion in the same period a year ago.

Net interest income fell 0.8% to THB23.53 billion, partly due to interest-rate cuts and the bank's strategy to shift toward high-quality loans, SCB said. Noninterest income rose 24% to THB13.38 billion, driven by strength in the wealth and bancassurance businesses, investment gains and gains from the sale of loans and nonperforming assets.

SCB set aside provisions of THB10.04 billion for expected credit losses, down from THB12.96 billion it reported in the third quarter last year. The nonperforming loan ratio rose to 3.89% at the end of September, from 3.79% at the end of June and 3.32% a year ago.

"The bank's steady growth despite the widespread impact of the Covid-19 pandemic reflected both our financial strength and our adaptability in this rapidly changing operating environment," said Arthid Nanthawithaya, the bank's chief executive.

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

(END) Dow Jones Newswires

10-21-21 0247ET