CIMB Thai Group recorded a consolidated net profit of THB1,294.6 million (RM 167.2 Million), a year-on-year decrease of THB74.3 million or 5.4%, while profit before tax (PBT) decreased by THB 117.2 million or 6.8% YoY to THB 1,611.0 million.
The decline it said was mainly from a 1.7% contraction in operating income and a 7.7% increase in operating expenses, partially offset by a 22.7% decline in expected credit loss (ECL).
Meanwhile, on a YoY basis, the consolidated operating income declined THB 118.4 million or 1.7% to THB 7,038.3 million from lower net fee and service income of THB 28.3 million.
This was due to higher fee and service expenses, and a THB 139.7 million or 2.9% decline in net interest income. Other operating income rose THB 49.6 million, 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.
Operating expenses rose by THB 312.0 million YoY or 7.7%, mainly from higher impairment loss on properties for sale as well as taxes and duties, but partially offset by lower employee expenses. This resulted in a higher cost to income ratio of 62.0% in 6M2024, compared to 56.6% in 6M2023.
Net interest margin (NIM) over earning assets stood at 2.2% in 6M2024, compared to 2.7% in 6M2023, as a result of higher cost of funds.
As at 30 June 2024, total gross loans (inclusive of loans guaranteed by other banks and loans to financial institutions) stood at THB 251.4 billion, an increase of 2.6% from 31 December 2023.
Deposits (inclusive of bills of exchange, debentures and selected structured deposit products) stood at THB 316.1 billion, an increase of 1.8% from THB 310.4 billion as at end of December 2023. The modified loan to deposit ratio was higher at 79.5%, compared to 78.9% as at 31 December 2023.
Gross non-performing loans (“NPL”) stood at THB 7.5 billion, with a lower equivalent gross NPL ratio of 2.9% compared to 3.3% as at 31 December 2023. The lower NPL ratio was mainly attributed to the sale of several NPLs in 2024, improvement in efficiency on risk management policies and asset quality management, as well as loan collection processes.
CIMB Thai’s loan loss coverage ratio as at 30 June 2024 stood at 129.1% compared to 124.2% at the end of December 2023. Total allowance for expected credit losses stood at THB 9.1 billion, THB 1.5 billion over the Bank of Thailand’s reserve requirements.
Total consolidated capital funds as at 30 June 2024 stood at THB 59.3 billion. The BIS ratio stood at 20.8%, of which 15.5% comprised Tier-1-capital.
For the remainder of 2024, CIMB Thai Bank said it will expedite its strategy to become a “Digital-led Bank with ASEAN Reach”, which leverages the Bank’s strengths in ASEAN, digitalization, wealth management, consumer finance, and sustainability.
“We have also expanded our service channels through a partnership with TrueMoney, a leading digital financial service provider in Southeast Asia. This collaboration opens a new channel that offers opportunities for customers to invest in the secondary bond market. We carefully select and offer highquality bonds, making them conveniently accessible through the TrueMoney application,” said Paul Wong Chee Kin, President and Chief Executive Officer.
