KUALA LUMPUR: CIMB Thai Bank PLC recorded a 19.4% jump in net profit to THB429.9mil over the six months ended June 30, 2019, over the previous corresponding period on the back of higher operating income and lower provisions.
The group said in a statement today that provisions fell 31% year-on-year (y-o-y) while operating income rose 1.2% to THB6.88bil on loan expansion and higher interest income. This was partially offset by a THB 40.7mil or 4.1% fall in net fee and service income.
Other operating income meanwhile dropped THB77.5mil on higher losses on financial instruments designated at fair value through profit or loss.
Operating expenses also rose THB653.3mil or 16.9% y-o-y due to the higher personnel cost from the Fast Forward expansion strategy and higher compensation for long-serving and retired employees.
"Coupled with a higher loss on sale of properties for sale, the cost to income ratio was higher at 65.8% in 6M2019 compared to 57.0% in 6M2018," said CIMB Thai.
Net Interest Margin (NIM) over earning assets stood at 3.3% in the first half of 2019 compared to 3.87% in same period last year, owing to higher cost of funds, it added.
Total gross loans as at June 30 had grown 4.2% to THB 237.3bil over six months while deposits stood at THB235.3bil, which was 0.4% higher over the same period.
The modified loan to deposit ratio rose to 100.9% compared to 97.2% as at Dec 31, 2018.
Meanwhile, the gross non-performing loans ratio rose to 4.5% or THB10.7bil from 4.3% at the end of 2018.
"CIMB Thai continues to exercise high standards for credit risk underwriting and risk management policies. The Bank also focuses on improving productivity, monitoring collection and managing all accounts closely and effectively," it said.
The group's loan loss coverage ratio stood at 106.5% as at June 30, 2019 compared to 107% as at the end of December 2018.
Total provisions stood at THB11.3bil, translating to a THB5.2bil excess over the Bank of Thailand’s reserve requirements.
Total consolidated capital funds as at 30 June 2019 stood at THB48.4bil.
BIS ratio stood at 18.7%, 13.7% of which comprised Tier-1-capital.
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