KUALA LUMPUR: CIMB Thai Bank PCL, a 94.83%-owned unit of CIMB Group
Holdings Bhd recorded a consolidated net profit of 626.1 million baht in the first quarter of 2024 (1Q24), a year-on-year (YoY) decline of 24.6% or 204 million baht.
In a statement, the bank said its profit before tax (PBT) fell by 247.9 million baht or 23.9% YoY to 790.2 million baht. This was mainly from an 8.4% decline in operating income and an 11.8% increase in operating expenses, partially offset by a 36.9% decline in expected credit loss (ECL).
On a YoY basis, CIMB Thai’s consolidated operating income contracted by 322.7 million baht or 8.4% from 2023 to 3,506.1 million baht from a lower net interest income of 28.8 million baht (lower by 1.2%).
CIMB Thai said this was driven by an increase in interest expenses on deposits and lower net fee and service income of 26.2 million baht or 8%, mainly attributed to higher fee and service expenses.
Other operating income decreased by 267.7 million baht or 23.1%, mainly from lower gains on investment, as well as lower gains on the sale of non-performing loans.
Its operating expenses rose by 231.7 million baht or 11.8%, mainly from higher impairment loss on properties for sale and related taxes and duties resulting in a higher cost-to-income ratio of 62.5% in 1Q24 compared to 51.2% in 1Q23.
Net interest margin (NIM) over earning assets stood at 2.2% in 1Q24, compared to 2.6% in 1Q23, as a result of higher cost of funds.
As at March 31, total gross loans (inclusive of loans guaranteed by other banks and loans to financial institutions) stood at 248.3 billion baht, up 1.4% from Dec 31, 2023.
Its deposits stood at 316.9 billion baht, an increase of 2.1% from 310.4 billion baht as at end of December 2023. The modified loan-to-deposit ratio was slightly lower at 78.4% compared to 78.9% as at Dec 31, 2023.
Gross non-performing loans (NPL) stood at 8.4 billion baht, with a higher gross NPL ratio of 3.4% from 3.3% as at Dec 31, 2023 due to retail loans.
CIMB Thai’s loan loss coverage ratio as at 1Q24 stood at 121.3% from 124.2% at the end of December 2023. Total allowance for expected credit losses stood at 9.6 billion baht, 1.5 billion baht over the Bank of Thailand’s reserve requirements.
Total consolidated capital funds as at March 31 stood at 59.7 billion baht. The BIS ratio stood at 20.8%, of which 15.5% comprised Tier-1 capital.
