CIMB Thai posts net profit of 2.85 billion baht for FY24


PETALING JAYA: CIMB Thai, which is 94.83% owned by CIMB Group Holdings Bhd, posted net profit of 2.85 billion baht for the financial year ended Dec 31, 2024 (FY24), a 77.7% year-on-year (y-o-y) increase.

In a statement, the group said this was mainly from a 9.7% growth in operating income and a 13.7% decrease in expected credit losses, offset by an increase of 2.6% in operating expenses.

On a y-o-y basis, operating income grew by 1.33 billion baht or 9.7% to 15.10 billion baht, attributed to other operating income growth of 1.39 billion baht or 49.4% from higher net gains on financial instruments measured at fair value through profit or loss, bad debt recovery and gains on investment, partially offset by lower gains on sale of non-performing loans.

The bank said net fee and service income increased by 237.4 million baht or 19.9%, largely attributed to higher fee income from goods and services payments,fund transfers and collections.

These were partially offset by lower net interest income of 295.2 million baht or 3% y-o-y as interest expense growth exceeded interest income growth.

Operating expenses increased by 224.7 million baht or 2.6%, mainly from higher impairment loss on properties for sale, partially offset by lower employee expenses.

The cost to income ratio improved to 58.7% compared to 62.7% in 2023 as a result of stronger operating income growth compared to operating expenses.

Net interest margin (NIM) over earning assets stood at 2.2% in 2024, compared to 2.6% in 2023, as a result of higher cost of funds.

As at Dec 31, 2024, the group said total gross loans (inclusive of loans guaranteed by other banks and loans to financial institutions) stood at 251.3 billion baht, an increase of 2.6% from Dec 31, 2023.

Deposits (inclusive of bills of exchange, debentures and selected structured deposit products) stood at 324 billion baht, an increase of 4.4% from 310.4 billion baht in the previous year.

The modified loan to deposit ratio was lower at 77.6% compared to 78.9% as at Dec 31, 2023.

Meanwhile, gross non-performing loans (NPL) stood at 6.7 billion baht, with a lower equivalent gross NPL ratio of 2.6% compared to 3.3% at the end of 2023.

“The lower NPL ratio was mainly attributed to the sale of NPLs in 2024, improved efficiency in risk management policies, improved asset quality management and loan collection processes,” said CIMB Thai.

CIMB Thai group’s loan loss coverage ratio was 137.9% compared to 124.2% y-o-y.

Total allowance for expected credit losses stood at 9 billion baht, 1.5 billion baht over the Bank of Thailand’s reserve requirements.

Total consolidated capital funds as at Dec 31, 2024 stood at 59.8 billion baht.

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CIMB Thai , CIMB Group , NPL , NIM , loan

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