Bangkok: CIMB Thai Bank has announced a net profit of 1,890.2 million baht for the first nine months of 2024, marking an 8.9% increase compared to the same period in the previous year. This growth is attributed to higher operating income and reduced credit losses, alongside a decline in non-performing loans (NPLs).
According to Thai News Agency, the bank’s net profit increase is primarily due to a 4.5 percent rise in operating income and a 5.7 percent decrease in expected credit losses, despite a 6.5 percent increase in operating expenses. Total operating income reached 10,785.5 million baht, boosted by a 6.8 percent increase in net fee and service income, particularly from payment services, and a 24.9 percent surge in other income, mainly from net profit on financial instruments.
The report also highlighted a significant decrease in net interest income by 106.7 million baht or 1.5 percent, as interest expenses grew more rapidly than interest income. Consequently, the Net Interest Margin (NIM) for the perio
d dropped to 2.3 percent from 2.6 percent in 2023.
On the operational front, CIMB Thai Bank saw its total net loans increase by 2.7 percent to 251.5 billion baht, while deposits decreased by 8.6 percent to 283.7 billion baht. The modified loan to deposit ratio rose to 88.7 percent from 78.9 percent at the end of last year.
Improvements were noted in the quality of the bank’s loan portfolio, with NPLs decreasing to 2.5 percent of total loans from 3.3 percent at the end of 2023. This improvement was attributed to effective risk management and enhanced debt collection processes. The expected credit loss allowance to non-performing loans ratio also improved, rising to 138.8 percent from 124.2 percent.
Furthermore, CIMB Thai Bank’s total capital as of September 30, 2024, stood at 57.2 billion baht, with a robust total capital ratio of 19.5 percent, indicating a strong capital adequacy position. The Tier 1 capital ratio was reported at 15.8 percent.