KUALA LUMPUR: CIMB Thai Group’s operating income fell 17.2% year-on-year (y-o-y) to 3.51 billion baht (RM461mil) in the first quarter of the year due to a drop in other income and net interest income.
“Other operating income decreased by 377.1 million baht or 37.2% due to the drop in gains on financial instruments measured at fair value through profit or loss of 367.8 million baht.
“Net interest income decreased by 366.4 million baht or 12.9%, caused by the lower interest income on loans from the lower credit expansion, ” CIMB Thai Group said in a statement to the Stock Exchange of Thailand.
However, net fee and service income partially offset the decline, rising 3.1% y-o-y due to higher insurance brokerage and underwriting income.
The bank’s operating expenses fell 15.5% largely due to better cost management and lower personnel cost while the cost-to-income ratio rose to 59.3% in the quarter due to the lower operating income.
Net interest margin over earning assets stood at 3.08% versus 3.31% in the same quarter last year due to the lower interest income on loans.
As at March 31, total gross loans stood at 219.5 billion baht, or 3.3% lower from Dec 31,2020.
Deposits fell 2.7% to 244.7 billion baht from 251.4 billion baht in Dec 31,2020.
The modified loan-to-deposit ratio dropped to 89.7% from 90.3% over the same period.
Gross non-performing loans stood at 10.6 billion baht, which translates to an impaired loan ratio of 4.8% compared to 4.6% on Dec 31,2020.
“The higher NPL ratio was mainly due to the decrease in total loan outstanding balance, while the non-performing loans have not significantly changed, ” said CIMB Thai.
Loan loss coverage ratio stood at 98.9% as at March 31, from 93.3% at the end of 2020.
Total allowance for expected credit losses stood at 9.6 billion baht, which is 1.9 billion baht over the central bank’s reserve requirements.
Total consolidated capital funds as at March 31 stood at 53.1 billion baht. The BIS ratio stood at 20.3%, of which 14.7% comprised of Tier-1 capital.