KUALA LUMPUR: CIMB Thai group's net profit for FY2018 fell 98.2% to THB6.9mil (RM886,900) year-on-year, due mainly to an increase in operating expenses and lower net fee, service and other income.
In a statement issued today, the 94.83%-owned indirect subsidiary of CIMB Group
Holdings said profit before tax fell 44.5% y-o-y to THB271.2mil.
Net fee and service income decreased THB26mil or 2.6% due to lower gains on trading and foreign exchange transactions while operating expenses increased THB733mil or 9.6% y-o-y mainly from higher personnel cost in line with the Bank’s Fast Forward expansion strategy and loss on property sales.
"This resulted in a higher cost to income ratio of 61.7% in 2018 compared to 57.9% in 2017," said CIMB Thai.
The bank posted operating income of THB13.54bil, up THB381.7mil or 2.9% y-o-y due to loan expansion and higher interest income on investments.
Net Interest Margin (NIM) over earning assets stood at 3.71% in 2018, compared to 3.89% in 2017 as a result of lower yield on earning asset.
Total gross loans was THB227.8mil, an increase of 6.9% y-o-y while deposits stood at THB234.3bil, 6.5% more than in the previous year.
The modified loan to deposit ratio was higher at 97.2% compared to 96.8% as at Dec 31, 2017.
The gross NPL stood at THB9.9bil, with a lower gross NPL ratio of 4.3% compared to 4.8% as at 31 December 2017.
"The lower NPL ratio was due to more efficient risk management policies, improved asset quality management and loan collection processes as well as the sale of some NPLs in 2018," said the group.
CIMB Thai's loan loss coverage ratio increased to 107% from 93.2% over the year.
As at Dec 31, 2018, total provisions stood at THB10.5 billion showing an excess of THB 5.0 billion over Bank of Thailand’s reserve requirements.
Total consolidated capital funds as at 31 December 2018 stood at THB47.9 bil. BIS ratio stood at 19.3%, 14.1% of which comprised Tier-1-capital.
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