CIMB Thai Bank reported a net profit of 1,890.2 million baht for the first 9 months of 2024, an increase of 8.9% from increased operating income and lower credit losses. NPLs were 2.5%, down from 3.3% at the end of 2023.
CIMB Thai Bank reported its operating results for the nine-month period ended September 30, 2024, with a net profit of 1,890.2 million baht, an increase of 153.9 million baht or 8.9 percent when compared to the net profit in the same period in 2023. The main reason was a 4.5 percent increase in operating income and a 5.7 percent decrease in expected credit losses, net of a 6.5 percent increase in operating expenses. Operating income for the nine-month period of 2024 was 10,785.5 million baht, an increase of 463.5 million baht or 4.5 percent when compared to the same period in 2023, due to an increase in net fee and service income of 63.4 million baht or 6.8 percent, mainly from an increase in income from payment services and payment products and services, and money transfer and collection f
ees. Other income increased by 506.7 million baht or 24.9 percent, mainly from an increase in net profit from financial instruments measured at fair value through net profit or loss, and a decrease in net profit from the sale of non-performing loans and net profit from investments. Net interest income decreased by 106.7 million baht or 1.5 percent due to interest expenses growing faster than interest income growth.
Operating expenses for the nine-month period of 2024 compared to the same period of 2023 increased by THB 407.1 million or 6.5 percent, mainly due to an increase in allowance for impairment of assets awaiting sale, net of a decrease in employee expenses, resulting in the ratio of operating expenses to operating income for the nine-month period of 2024 at 61.7 percent, an increase compared to the same period of 2023 at 60.6 percent.
Net Interest Margin (NIM) for the nine-month period of 2024 was 2.3 percent, down from 2.6 percent in the same period of 2023, resulting from higher deposit costs.
As
of 30 September 2024, the Group’s net loans (including loans guaranteed by other banks and loans to financial institutions) stood at THB251.5 billion, an increase of 2.7% compared to loans as of 31 December 2023. The Group’s deposits (including bills of exchange, debentures and certain financial products) stood at THB283.7 billion, down 8.6% from THB310.4 billion at the end of 2023. The Group’s Modified Loan to Deposit Ratio increased to 88.7% from 78.9% as of 31 December 2023.
Non-performing loans (NPLs) stood at THB6.4 billion, with the ratio of non-performing loans to total loans at 2.5 percent, down from 3.3 percent as of December 31, 2023, due to the sale of non-performing loans during 2024, effective risk management, improvements in asset quality management and debt collection processes.
The ratio of expected credit loss allowance to non-performing loans as at 30 September 2024 was 138.8 percent, up from 124.2 percent at the end of 2023. The Group’s expected credit loss allowance was THB8.6 billion, o
f which THB1.5 billion was in excess of the Bank of Thailand’s provisioning requirements.
The Group’s total capital as of September 30, 2024, was 57.2 billion baht, representing a total capital ratio of 19.5 percent, of which Tier 1 capital ratio was 15.8 percent.
Source: Thai News Agency
