PETALING JAYA: CIMB Thai Bank PCL, an indirectly held subsidiary of CIMB Group
Holdings Bhd, recorded a net profit of 1.89 billion baht (US$244.36mil) in the nine months period ended Sept 30, 2024 (9M24), 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 due 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 with the year-ago period, the bank’s operating income grew 4.5% to 10.79 billion baht, attributed to the 6.8% increase in net fee and service income.
This was largely due 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 106.7 million baht.
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 over earning assets stood at 2.3% in 9M24, 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 251.5 billion baht, an increase of 2.7% from Dec 31, 2023.
Deposits (inclusive of bills of exchange, debentures and selected structured deposit products) stood at 283.7 billion baht, a decrease of 8.6% from 310.4 billion baht as at end-December 2023. — Bernama
