PETALING JAYA: CIMB Thai Bank PCL has recorded a net profit of 908.2 million baht (RM112.11mil), an increase of 70.1 million baht or 8.4% year-on-year (y-o-y), in the first quarter of 2026 (1Q26) as compared to the same quarter in 2025, it announced in a statement yesterday.
The bank, which is a 94.83% indirectly-held subsidiary of CIMB Group Holdings 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 110.6 million baht, or 3.1% y-o-y to 3.47 billion baht, attributed to the contraction in net interest income of 156.8 million baht due to lower asset yields in line with the prevailing low interest rate environment.
Net fee and service income dropped 82.2 million baht or 22.7% from lower insurance brokerage income and underwriting fee. This was partially offset by the increase in other operating income of 128.4 million baht or 12.6% due to gains on investments.
Operating expenses decreased 9.4 million baht 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 the period compared to 47.6% in the previous corresponding period.
Net interest margin over earning assets stood at 1.96% in 1Q26, slightly lower than the 2.04% in 1Q25, 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 236.6 billion baht, an increase of 1.6% from Dec 31, 2025.
Deposits (inclusive of bill of exchanges, debentures and selected structured deposit products) stood at 286.9 billion baht, a decrease of 4.8% from 301.5 billion baht 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 chief executive officer of CIMB Thai Bank.
