CIMB Thai Bank posts THB 130.6 million profit for first three months
(23 April 2015 – Thailand) CIMB Thai Bank PCL has reported a profit of THB 130.6 million (A$5.22 million) for the first three months of 2015.
CIMB Thai group’s consolidated operating income rose by THB 265.4 million or 9.8 percent year-on-year to THB 2,963.6 million from 3M2014.
Pre- Provision Operating Profit increased 15.8 percent year-on-year to THB 1,181.7 million accelerated by lower growth in operating expenses of 6.2 percent.
Net profit decreased by THB 310.3 million or 70.4 percent year-on-year to THB 130.6 million, mainly attributed to a 117.6 percent year-on-year increase in provisions.
In its statement, CIMB Thai said the higher provisions are reflective of a weaker environment leading up from the slower economic conditions.
Nevertheless, compared with 4Q2014, Net profit increased 47.1 percent from THB 88.8 million to THB 130.6 million illustrating better abilities to cope with extended slower economic conditions.
On a year-on-year basis, net fee and service income increased by THB 90.7 million or 28.4 percent, mainly due to higher fees from insurance premium.
Net interest income only increased by THB 59.1 million or 3.2 percent, resulting from slower loan expansion and early redemption of hybrid instruments in 2014, which resulted in a higher gain in 1Q14, the statement said.
Operating expenses grew by THB 104.3 million or 6.2 percent, mainly from employee expenses.
The cost to income ratio decreased to 60.1 percent in 3M2015 compared to 62.2 percent in 3M2014 as a result of better cost management and increased income.
Net Interest Margin (NIM) over earning assets stood at 2.95 percent in 3M2015, a drop of 0.32 percent from 3M2014, resulting from higher low yielding assets, anemic loans growth due to economic slowdown and higher cost of funds.
Deposits (inclusive of Bill of Exchanges, Debentures and selected Structured Deposit Products) stood at THB 208.0 billion, a decrease of 1.8 percent from THB 211.7 billion at the end of December 2014.
As a result, the Modified Loan to Deposit Ratio increased to 91.8 percent from 90.1 percent as at 31 December 2014.
The gross non-performing loans (NPL) stood at THB 7.1 billion, with an equivalent gross NPL ratio of 3.7 percent.
This is an increase from 3.3 percent as at 31 December 2014 due to slower repayments from several corporate accounts.
CIMB Thai said it continues to exercise high credit risk underwriting standards and risk management policies.
The Bank also focuses on improving productivity, monitoring collection and managing all accounts closely and effectively.
CIMB Thai Group’s loan loss coverage ratio stood at 94.1 percent as at 31 March 2015.
As at 31 March 2015, our total provisions stood at THB 6.6 billion showing an excess of THB 2.6 billion over Bank of Thailand’s reserve requirements.
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