KUALA LUMPUR: CIMB Thai Bank PCL, an indirectly held subsidiary of CIMB Group
Holdings Bhd, recorded a net profit of THB1.89bil (RM244.36mil) in the nine months period ended Sept 30, 2024, an increase of 8.9% year-on-year (y-o-y) from the same period a year ago.
In a statement, the bank said the improvement was mainly owing to 4.5% growth in operating income and a 5.7% decrease in expected credit losses, partially offset by a 6.5% increase in operating expenses.
Compared to the year-ago period, the bank's operating income grew 4.5% to THB10.79bil, attributed to the 6.8% increase in net fee and service income. This was largely owing to higher fee income from goods and services payment and fund transfer and collection.
Other operating income rose 24.9%, driven by higher net gains on financial instruments measured at fair value through profit or loss.
CIMB Thai said this was partially offset by lower gains from the sale of non-performing loans and gains on investment.
Additionally, net interest income declined marginally by 1.5% or THB106.7mil.
Meanwhile, operating expenses increased 6.5% due to higher impairment loss on properties for sale, while lower personnel expenses helped to mitigate some of the impact.
This resulted in a higher cost to income ratio of 61.7% in 9M24 compared to 60.6% in 9M23.
Net interest margin (NIM) over earning assets stood at 2.3% in 9M2024, compared to 2.6% in 9M23, as due to higher cost of funds.
As at Sept 30, 2024, total gross loans (including loans guaranteed by other banks and loans to
financial institutions) stood at THB251.5bil, an increase of 2.7% from Dec 31, 2023.
Deposits (inclusive of bills of exchange, debentures and selected structured deposit products) stood at THB283.7bil, a decrease of 8.6% from THB310.4bil as at end-December 2023.
The modified loan to deposit ratio was higher at 88.7%, compared to 78.9% as at Dec 31, 2023.
Gross non-performing loans (NPL) stood at THB6.4bil, with a lower equivalent gross NPL ratio of 2.5% compared to 3.3% as at Dec 31, 2023.
The lower NPL ratio was mainly attributed to the sale of several NPLs in 2024, improvement in risk and asset quality management, as well as loan collection processes.
CIMB Thai’s loan loss coverage ratio as at Sept 30, 2024, stood at 138.8% compared to 124.2% as
at the end of December 2023.
Total allowance for expected credit losses stood at THB8.6bil, THB1.5bil over the Bank of Thailand’s reserve requirements.
Total consolidated capital funds as at Sept 30, 2024, stood at THB57.2bil. The BIS ratio stood at 19.5%, of which 15.8% comprised Tier 1 capital.
