KUALA LUMPUR: CIMB Thai Bank PLC recorded a net profit of 1.71 billion baht (RM212.65mil) in the nine months ended Sept 30, 2021, a 16.4% year-on-year (y-o-y) increase over the previous corresponding period, due to better cost control.
In a statement yesterday, the bank said there was a 12.3% decline in operating expenses due to better optimisation of resources and cost management.
This resulted in an improved cost-to-income ratio of 55.7% for the period under review compared with the same corresponding period in 2020.
The bank added that there was a 6% decrease in expected credit losses despite a 5.4% drop in operating income.
For the three quarters, the bank reported a 5.4% decline in operating income to 10.88 billion baht (RM1.35bil) due to a 9.4% drop in interest income on loan and hire-purchase business from lower credit expansion.
This was partially offset by a 16.7% increase in net fee and service income, driven by higher fee income from insurance and mutual fund brokerage.
Other operating income rose 0.2% due to an increase in gains on financial instruments measured at fair value through profit or loss.
Net interest margin over earning assets stood at 3.1% in the nine months ended Sept 30, 2021, compared with 3.3% a year earlier, resulting from lower interest income on loans and hire-purchase business.
The gross non-performing loan (NPL) stood at 9.6 billion baht (RM1.19bil), with a lower equivalent gross NPL ratio of 4.4% compared with 4.6% as at Dec 31, 2020.
The lower NPL ratio was mainly due to the sale of some NPLs in 2021, more efficient risk management policies, improved asset quality management and loan collection processes.
CIMB Thai Group’s loan loss coverage ratio as at Sept 30, 2021, stood at 105.9% from 93.3% at the end of December 2020.
Total allowance for expected credit losses stood at 9.4 billion baht (RM1.17bil), 1.7 billion baht (RM211.7mil) over the Bank of Thailand’s reserve requirements.
Total consolidated capital funds as at Sept 30, 2021 stood at 54 billion baht (RM6.72bil).
Bank of International Settlements ratio stood at 20.7%, 15% of which comprised tier-1-capital.