CIMB THAI posts net profit of THB626.1 million for 3M2024
Paul Wong Chee Kin, President and Chief Executive Officer of CIMB Thai Bank PCL, provided insights on the unreviewed consolidated financial results for the three months ended 31 March 2024.
CIMB Thai recorded a consolidated net profit of THB626.1 million, marking a year-on-year (“YoY”) decline of THB204 million or 24.6%, while profit before tax (“PBT”) decreased by THB247.9 million or 23.9% YoY to THB790.2 million. This decline was primarily attributable to an 8.4% reduction in operating income and an 11.8% increase in operating expenses, partially mitigated by a 36.9% decline in expected credit loss (ECL).
On a YoY basis, CIMB Thai’s consolidated operating income contracted by THB322.7 million or 8.4% from 2023 to THB3,506.1 million, stemming from a lower net interest income of THB28.8 million (a decrease of 1.2%). This decrease was driven by heightened interest expenses on deposits and a decrease in net fee and service income of THB26.2 million or 8%, primarily attributed to elevated fee and service expenses. Additionally, other operating income decreased by THB267.7 million or 23.1%, primarily due to reduced gains on investments, as well as diminished gains on the sale of non-performing loans.
Operating expenses rose by THB231.7 million or 11.8%, mainly from higher impairment loss on properties for sale and related taxes and duties. This resulted in a higher cost-to-income ratio of 62.5% in 3M2024 compared to 51.2% in 3M2023.
Net interest margin (NIM) over earning assets stood at 2.2% in 3M2024, compared to 2.6% in 3M2023, as a result of higher cost of funds.
As of 31 March 2024, total gross loans (inclusive of loans guaranteed by other banks and loans to financial institutions) stood at THB 248.3 billion, an increase of 1.4% from 31 December 2023. Deposits (inclusive of bills of exchange, debentures and selected structured deposit products) stood at THB 316.9 billion, an increase of 2.1% from THB 310.4 billion as of the end of December 2023. The modified loan-to-deposit ratio was slightly lower at 78.4% compared to 78.9% as of 31 December 2023.
Gross non-performing loans (“NPL”) stood at THB 8.4 billion, with a higher gross NPL ratio of 3.4% from 3.3% as of 31 December 2023 due to retail loans. However, CIMB Thai continues to exercise high credit risk underwriting standards and robust risk management policies. The Bank also focuses on improving productivity, monitoring collection and managing all accounts closely and effectively.
CIMB Thai’s loan loss coverage ratio as of 31 March 2024 stood at 121.3% from 124.2% at the end of December 2023. Total allowance for expected credit losses stood at THB 9.6 billion, THB 1.5 billion over the Bank of Thailand’s reserve requirements.
Total consolidated capital funds as of 31 March 2024 stood at THB 59.7 billion. The BIS ratio stood at 20.8%, of which 15.5% comprised Tier-1 capital.
