KUALA LUMPUR: CIMB Thai Bank PCL, a 94.83%-owned indirect subsidiary of CIMB Group Holdings Bhd, saw its net profit fall 5.4% year-on-year (YoY) to 1.29 billion baht in the first half year ended 30 June 2024 (1H 2024).
In a filing with Bursa Malaysia, CIMB Thai President and Chief Executive Officer Paul Wong Chee Kin said the decline was mainly due to a 1.7% contraction in operating income and a 7.7% increase in operating expenses, partially offset by a 22.7% drop in expected credit loss.
On a YoY basis, he said CIMB Thai Group’s consolidated operating income fell 1.7% to 7.04 billion baht from a lower net fee and service income of 28.3 million baht, due to higher fee and service expenses and a 2.9% decline in net interest income.
“Other operating income rose 49.6 million baht, up 3.1% driven by net gains on financial instruments measured at fair value through profit or loss and partially offset by lower gains on sale of non-performing loans,” he said.
Operating expenses rose 7.7% YoY to 312 million baht mainly from higher impairment loss on properties for sale as well as taxes and duties but partially offset by lower employee expenses.
“Net interest margin over earning assets stood at 2.2% in 1H 2024 compared to 2.7% in 1H 2023 as a result of higher cost of funds,” he added.
As at 30 June 2024, total gross loans (inclusive of loans guaranteed by other banks and loans to financial institutions) stood at 251.4 billion baht, an increase of 2.6% from 31 December 2023.
Deposits (inclusive of bills of exchange, debentures and selected structured deposit products) stood at 316.1 billion baht, up 1.8%, from 310.4 billion baht in end-December 2023.
Gross non-performing loans (NPL) stood at 7.5 billion baht with a lower equivalent gross NPL ratio of 2.9% compared to 3.3% as of 31 December 2023.
“The lower NPL ratio was mainly attributed to the sale of several NPLs in 2024, improvement in efficiency on risk management policies and asset quality management, as well as loan collection processes,” he said.
Wong said CIMB Thai’s loan loss coverage ratio stood at 129.1% as of 30 June 2024, compared to 124.2% at the end of December 2023.
— BERNAMA
