KUALA LUMPUR: CIMB Thai Bank PCL, a 94.83% indirectly held subsidiary of CIMB Group Holdings Bhd
, posted a 3.2% drop in net profit year-on-year (y-o-y) to THB1.83bil (RM237.13mil) for the nine months ended Sept 30, 2025, on the back of a 59.5% increase in expected credit loss (ECL).
In a statement, the bank said the rise in ECL reflects its prudent approach in repsonse to prevailing economic conditions.
The group said its consolidated operating income decreased 2.2% y-o-y to THB10.55bil due to a 15.1% decline in net interest income and a 0.5% decrease in net fee and service income.
"On a y-o-y basis, net interest income decreased THB1.09bil due to lower interest income on loans. Net fee and service income contracted THB5.1mil, primarily from insurance brokerage income," it said.
This was partially offset by a THB863mil or 34% jump in other income, driven by higher net investment gains.
Operating expenses during the period decreased 19.4% due to lower impairment loss on properties for sale and reduced specific business tax arising from lower interest income, partially offset by higher personnel costs.
The cost-to-income ratio improved to 50.2% in 9M25 compared to 61% in 9M24.
Net interest margin over earning assets stood at 1.9% in 9M25 compared to 2.3% in 9M24, arising from lower interest income on loans.
As at Sept 30, 2025, total gross loans (inclusive of loans guaranteed by other banks and loans to financial institutions) stood at THB242.1bil, a decrease of 3.7% from Dec 31, 2024.
Deposits (inclusive of bills of exchange, debentures and selected structured deposit products) stood at THB318.5bil, a decrease of 1.7% from THB 324bil as at end-December 2024.
Gross non-performing loans (NPL) stood at THB6.3bil, with a flat gross NPL ratio of 2.6% compared to end-December 2024.
