Bangkok: CIMB Thai Bank announced a net profit of 1,012.6 million baht for the first six months of 2025, reflecting a 21.8% decrease from the previous year.

According to Thai News Agency, the decline in net profit is attributed to one-off adjustments, including changes to the effective interest rate income recognition and provisions for additional credit losses. These measures are part of the bank's strategy to maintain financial stability amidst economic uncertainties.

Mr. Wut Thanittiraphorn, President and CEO of CIMB Thai Bank, highlighted that despite the reduction in net profit, the bank improved its operating expenses to operating income ratio to 52.1% from 62.0% in the previous year. Profit before income tax was reported at 1,268.9 million baht, down by 21.2%, influenced by a 13.6% drop in net interest income and an 86.2% rise in expected credit losses. However, operating expenses decreased by 19.1%, and there was an increase in net fee and service income by 4.8% and other income by 21.5%.

Operating income totaled THB 6,780.5 million, marking a 3.7% decline compared to the same period in 2024. The reduction was largely due to a decrease in net interest income as a result of lower interest income from loans. Meanwhile, other operating income saw an increase due to net gains on sales of investments.

Operating expenses decreased by THB 832.7 million, primarily due to reduced impairment allowances for foreclosed properties and lower specific business tax. This was partly offset by increased employee expenses. The bank's Net Interest Margin dropped to 1.9% from 2.2% in the previous year due to decreased interest income from loans.

The bank's net loans were THB 244.2 billion, showing a 2.8% decrease from the end of 2024, while deposits stood at THB 316.5 billion, a 2.3% drop. The Modified Loan to Deposit Ratio slightly decreased to 77.2%.

Non-performing loans remained stable at THB 6.3 billion, with a ratio of 2.6% to total loans, thanks to effective credit risk management and improved loan collection practices. The allowance for expected credit losses ratio increased to 155.9%, with a total allowance of THB 9.7 billion, exceeding regulatory requirements by THB 1.5 billion.

CIMB Thai's total capital was THB 60.6 billion, reflecting a capital adequacy ratio of 21.7%, with Tier 1 capital at 17.0%.