KUALA LUMPUR: CIMB Thai Bank PCL, a 94.83%-indirectly owned subsidiary of CIMB Group Holdings Bhd
, registered a 20.9% year-on-year (y-o-y) drop in net profit to THB2.26bil (RM293.88mil) in the financial year ended Dec 31, 2025, due to a decrease in operating income and an increase in expected credit loss.
The Thai bank said in a statement operating income decreased by THB1.33bil to THB13.77bil due to lower net inerest income, which contracted 12.4% y-o-y on lower loan balances and margin contraction.
Net fee and service income
decreased 7.4% or THB106.2mil, primarily due to lower insurance brokerage income.
Other operating income marginally declined by 1.1%, or THB46.8mil, reflecting lower gains on financial instruments measured at fair value through profit or loss, bad debt recoveries and gains on sale of non-performing loans, partly offset by higher investment gains.
Operating expenses eased 17.2% y-o-y or THB1.52bil, due to lower impairment losses on
properties for sale and personnel costs, and a decline in specific business tax, resulting to a lower interest income.
This consequently improved the cost to income ratio to 53.3% in 2025, from 58.7% in 2024.
Net interest margin (NIM) over earning assets stood at 1.9% in 2025, compared to 2.2% in 2024 as a result of lower yield on earning assets.
As at Dec 31, 2025, total gross loans (inclusive of loans guaranteed by other banks and loans to financial institutions) stood at THB232.8bil, down 7.6% y-o-y.
Deposits (inclusive of bills of exchange, debentures and selected structured deposit products) decreased to 6.9% to THB 301.5bil.
The modified loan to deposit ratio 77.2%.
Gross NPL declined to THB5.2bil, improving the NPL ratio to 2.2%, from 2.6% as at Dec 31, 2024, supported by NPL sales and stronger asset quality management and loan collection processes.
Loan loss coverage ratio as at 31 December 2025 stood at 171.5% from 149.0% at the end of December 2024.
Total allowance for expected credit losses stood at THB 8.8 billion, THB1.5bil over the Bank of Thailand’s reserve requirements.
Total consolidated capital funds as at Dec 31, 2025, stood at THB60.8bil.
The BIS ratio stood at 21.3%, of which 16.8% comprised Tier-1-capital.
