CIMB Thai Q1 net profit up nearly 40pct to RM21m

UALA LUMPUR: CIMB Thai Bank PCL's net profit rose 39.3% to RM168.8mil baht (RM21.03mil) in the first quarter ended March 31, 2018, boosted by higher operating income.

It reported on Friday its operating income rose by 8.1% on-year to 3.382bil baht. Net interest income rose 5.4% to 2.595bil baht. Its net fee and service income increased by 11.1% to 474.7mil baht.

During the Q1, its net interest margin improved to 3.98% from 3.77% on-year on more efficient funding cost management.

CIMB Thai president and CEO Kittiphun Anutarasoti said the higher net profit was mainly due to an 8.1% growth in operating income and a 4.5% drop in provisions, offset by a 10.6% increase in operating expenses.

The higher operating income of 3.382bil baht was supported by an increase of 132.9mil baht or 5.4% in net interest income and 47.3mil baht or 11.1% in net fee and service income. This was due to higher fees from insurance, hire-purchase and mutual funds. 

The bank said its other operating income rose by 72.1mil baht or 30.1% from the gain on sales of available for sale securities.

Operating expenses increased by 186mil baht or 10.6%, mainly from higher expenses from
properties for sale and personnel cost, partially offset by lower expenses from premises and equipment.

As at March 31, the bank's total gross loans (inclusive of loans guaranteed by other banks and loans to financial institutions) inched up 0.3% to 213.7bil baht.

CIMB Thai Bank also pointed out its deposits loan to deposit ratio rose to 97.4% from 96.8% as at Dec 31 2017.

Gross non-performing loans (NPL) were 11.4bil baht, with an equivalent gross NPL ratio of 5.2% from 4.8% as at end-December 2017. The increase was due to the sale of NPLs in 2017. 

“CIMB Thai continues to exercise high credit risk underwriting standards and risk management policies,” it said.

As at March 31, 31 March 2018, total provisions stood at THB 10.4 billion, translating to a 4.0bil baht excess over the Bank of Thailand’s reserve requirements.