CIMB Thai posts a 9-month profit of 1.8 billion baht, up nearly 9%.
CIMB Thai Bank PCL (CIMB Thai) reported its unreviewed consolidated financial results for the nine months ending 30 September 2024.
The bank achieved a consolidated net profit of THB 1.8902 billion, reflecting an 8.9% year-on-year (YoY) increase, or THB 153.9 million, compared to the same period in 2023.
This improvement was driven by a 4.5% rise in operating income and a 5.7% reduction in expected credit losses, partially offset by a 6.5% increase in operating expenses.
Operating income grew by 4.5% YoY, or THB 463.5 million, to THB 10.7855 billion, mainly due to a 6.8% rise in net fee and service income, primarily from higher fees related to goods and services payments, fund transfers, and collections.
Other operating income increased by 24.9%, or THB 506.7 million, driven by higher net gains on financial instruments measured at fair value through profit or loss. This growth was partially offset by lower gains from the sale of non-performing loans and investments. Net interest income saw a slight decline of 1.5%, or THB 106.7 million.
Operating expenses rose by 6.5%, or THB 407.1 million, due to higher impairment losses on properties for sale, though lower personnel expenses helped mitigate the impact. As a result, the cost-to-income ratio increased to 61.7% from 60.6% in 9M2023.
Net interest margin (NIM) over earning assets decreased to 2.3% from 2.6% in 9M2023 due to higher funding costs.
As of 30 September 2024, total gross loans amounted to THB 251.5 billion, a 2.7% increase from 31 December 2023. Deposits, including bills of exchange, debentures, and selected structured products, totaled THB 283.7 billion, an 8.6% decline from THB 310.4 billion at the end of December 2023. The modified loan-to-deposit ratio rose to 88.7% from 78.9%.
Gross non-performing loans (NPLs) stood at THB 6.4 billion, with the gross NPL ratio declining to 2.5% from 3.3% at the end of 2023. This improvement was driven by NPL sales, better risk and asset quality management, and enhanced loan collection processes.
CIMB Thai's loan loss coverage ratio increased to 138.8% from 124.2% as of 31 December 2023. The total allowance for expected credit losses was THB 8.6 billion, exceeding the Bank of Thailand’s reserve requirements by THB 1.5 billion.
Total consolidated capital funds amounted to THB 57.2 billion, with a BIS ratio of 19.5%, including 15.8% in Tier 1 capital.
