CIMB THAI'S NET PROFIT DOWN 5.4 PCT Y-O-Y TO 1.29 BLN BAHT IN 1H 2024

KUALA LUMPUR, July 19 (Bernama) -- CIMB Thai Bank PCL, a 94.83 per cent-owned indirect subsidiary of CIMB Group Holdings Bhd, saw its net profit fall 5.4 per cent year-on-year (y-o-y) to 1.29 billion baht (100 baht = RM12.89) in the first half year ended June 30, 2024 (1H 2024).

In a filing with Bursa Malaysia today, CIMB Thai president and chief executive officer Paul Wong Chee Kin said the decline was mainly due to a 1.7 per cent contraction in operating income, and a 7.7 per cent increase in operating expenses, partially offset by a 22.7 per cent drop in expected credit loss. 

On a y-o-y basis, he said CIMB Thai Group’s consolidated operating income fell 1.7 per cent to 7.04 billion baht from a lower net fee and service income of 28.3 million baht, due to higher fee and service expenses, and a 2.9 per cent decline in net interest income. 

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"Other operating income rose 49.6 million baht, up 3.1 per cent, driven by 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," he said.

Operating expenses rose 7.7 per cent y-o-y to 312 million baht mainly from higher impairment loss on properties for sale as well as taxes and duties, but partially offset by lower employee expenses. 

"Net interest margin over earning assets stood at 2.2 per cent in 1H 2024, compared to 2.7 per cent in 1H 2023, as a result of higher cost of funds," he said.

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As at June 30, 2024, total gross loans (inclusive of loans guaranteed by other banks and loans to financial institutions) stood at 251.4 billion baht, an increase of 2.6 per cent from Dec 31, 2023.

Deposits (inclusive of bills of exchange, debentures and selected structured deposit products) stood at 316.1 billion baht, up 1.8 per cent, from 310.4 billion baht at end-December 2023. 

Gross non-performing loans (NPL) stood at 7.5 billion baht with a lower equivalent gross NPL ratio of 2.9 per cent compared to 3.3 per cent as at Dec 31, 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," he said.

Wong said CIMB Thai’s loan loss coverage ratio stood at 129.1 per cent as at June 30, 2024, compared to 124.2 per cent at the end of December 2023. 

-- BERNAMA