KUALA LUMPUR: CIMB Thai Bank PCL posted a net profit of THB1.29bil (RM166.47mil) in the first half of its 2024 financial year (FY24), representing a 5.4% decrease from the same period in 2023 on the back of a decline in operating income and increased expenses.
In a statement, the Thai banking division of CIMB Group
, said its operating income contracted 1.7% to THB7.04bil due to lower net fee and service income of THB28.3mil.
It said this was owing to higher fee and service expenses while net interest income declined 2.9%.
Other operating income rose THB49.6mil, up 3.1%, driven from net gains on financial instruments measured at fair value through profit or loss and partially offset by lower gains on sale of non-performing loans.
Meanwhile, operating expenses rose 7.7%, mainly due to higher impairment loss on properties for sale as well as taxes and duties.
Subsequently, cost-to-income ratio rose to 62% in 6M24 as compared to 56.6% in 6M23
The bank said the net interest margin over earnings assets stood at 2.2% in the six months period as compared to 2.7% in 6M23 as a result of the higher cost of funds.
As at June 30, 2024, total gross loans inclusive of loans guaranteed by other banks and loans to financial institutions stood at THB251.4bil, an increase of 2.6% from Dec 31, 2023.
Deposits, inclusive of bills of exchange, debentures and selected structured deposit products, stood at THB316.1bil, an increase of 1.8% from THB310.4bil as at end-December 2023.
The modified loan to deposit ratio was higher at 79.5%, compared to 78.9% as at Dec 31, 2023.
Gross non-performing loans (NPL) stood at THB7.5bil, with a lower equivalent gross NPL ratio of 2.9% compared to 3.3% as at Dec 31, 2023.
CIMB Thai Bank president and CEO Paul Wong Chee Kin said for the remainder of 2024, the bank will expedite its strategy to become a "digital-led bank with Asean reach", which leverages the bank's strengths in Asean, digitalisation, wealth management, consumer finance, and sustainability.
"Our key strategy is to create a digital ecosystem that enhances our services in the modern world through the CIMB Thai mobile banking app," he said.
