KUALA LUMPUR: CIMB Thai Bank PCL recorded a net profit of THB908.2mil (RM112.11mil), an increase of THB70.1mil or 8.4% year-on-year (y-o-y), in the first quarter of 2026, as compared to the same quarter in 2025, it announced in a statement today.
The bank, which is a 94.83% indirectly-held subsidiary of CIMB Group
Holding Bhd, said the improved performance was mainly owing to a 0.6% decline in operating expenses and a 21.1% decrease in expected credit losses, offsetting the 3.1% decline in operating income.
Operating income declined THB110.6mil, or 3.1% y-o-y to THB3.47bil, attributed to the contraction in net interest income of THB156.8mil due to lower asset yields in line with the prevailing low interest rate environment.
Net fee and service income dropped THB82.2mil or 22.7% from lower insurance brokerage income and underwriting fee. This was partially offset by the increase in other operating income of THB128.4mil or 12.6% due to gains on investments.
Operating expenses decreased THB 9.4 million or 0.6%, largely due to lower employee expenses, partially offset by higher impairment loss on properties foreclosed. The cost-to-income ratio stood at 48.9% in 3M2026 compared to 47.6% in 3M2025.
Net interest margin (NIM) over earning assets stood at 1.96% in 3M2026, slightly lower than the 2.04% in 3M2025, primarily due to policy rate cuts leading to asset yield compression. This was further pressured by loan contraction, though partly offset by lower funding costs.
As at March 31, 2026, total gross loans (inclusive of loans guaranteed by other banks and loans to financial institutions) stood at THB236.6bil, an increase of 1.6% from Dec 31, 2025.
Deposits (inclusive of bill of exchanges, debentures and selected structured deposit products) stood at THB286.9bil, a decrease of 4.8% from THB301.5bil as at end-December 2025.
“CIMB Thai continues to make steady progress in executing CIMB Group’s Forward30 strategy, with a clear focus on strengthening our balance sheet, enhancing deposit franchise and driving quality growth.
"Despite a more uncertain operating environment, we remain committed to delivering resilient returns through deeper customer engagement, increased cross-sell across our core segments and continued discipline in risk management.
"As part of CIMB Group’s ASEAN network, CIMB Thai is well-positioned to capture regional flows and support our customers’ evolving needs, in line with our purpose of advancing customers and society,” said Wut Thanittiraporn, president and CEO, CIMB Thai Bank.
