CIMB Thai Bank PCL unreviewed consolidated financial results for the nine months ended recorded a consolidated net profit of THB 2,811.5 million (RM347 million), an increase of THB 1,103.3 million or 64.6% year-on-year (“YoY”) compared to first nine months of 2021.
Paul Wong Chee Kin, President, and Chief Executive Officer said the improvement was mainly attributed to a 3.9% decline in operating expenses from improved cost control and a 45.5% decrease in expected credit losses due to lower impairments of assets, despite a 0.4% drop in operating income.
On a YoY basis, operating income declined by THB 38.1 million, or 0.4% to THB 10,709.4 million. The decrease of THB 485.8 million or 6.4% in net interest income was due to the lower interest income from hire purchase business and loans. This was partially offset by a THB 172.6 million or 17.7% increase in net fee and service income, driven by higher fee income from insurance and mutual fund brokerage. Other operating income increased by THB 275.2 million or 12.5% from an increase in gains on financial instruments measured at fair value and other income, which was offset by the increase of
losses on investments.
Group’s loan loss coverage ratio stood at 113.6% as at 30 September 2022, compared to 117.5% at the end of December 2021. The total allowance for expected credit losses stood at THB 8.1 billion, which is THB 1.5 billion over the Bank of Thailand’s reserve requirements. Total consolidated capital funds stood at THB 56.2 billion as at 30 September 2022, whilst. BIS ratio stood at 20.5%, of which 15.0% comprised Tier-1-capital.
