CIMB Thai 2017 profit jumps to 384.9 million baht
KUALA LUMPUR: CIMB Thai Bank PCL (CIMB Thai), a 94.11 per cent indirectly held subsidiary of CIMB Group Holdings Bhd, returned to the black with a net profit of 384.9 million baht (1,000 baht = RM124) for the financial year ended Dec 31, 2017.
This was an increase of 1.01 billion baht or 161.1 per cent year-onyear (y-o-y) compared to a 629.5 million baht net loss of 629.5 million in 2016, CIMB Thai said in a statement yesterday.
“The improvement is due to a 1.8 per cent y-o-y growth in operating income and a 19.5 per cent y-o-y drop in provisions,” said president and chief executive officer, Kittiphun Anutarasoti.
However, operating expenses increased by 189.4 million baht or 2.6 per cent y-o-y, mainly from higher other expenses and employee expenses. These were partially offset by lower premises and equipment expenses.
CIMB Thai’s cost-to-income ratio increased to 57.9 per cent in 2017 compared to 57.4 per cent in 2016. Excluding one-off expenses related to business rationalisation, the cost-to-income ratio would have improved to 56.9 per cent in 2017.
Net interest margin over earning assets stood at 3.89 per cent in 2017, compared to 3.77 per cent from 2016, as a result of more efficient funding cost management.
As at Dec 31, 2017, total gross loans (inclusive of loans guaranteed by other banks and loans to financial institutions) stood at 213.0 billion baht, an increase of 3.2 per cent from Dec 31, 2016.
Deposits (inclusive of bill of exchanges, debentures and selected structured deposit products) dipped 1.5 per cent from 223.5 billion baht last year to 220.1 billion baht as at the December 2017.
Gross non-performing loans (NPL) stood at 10.7 billion baht, with a lower equivalent gross NPL ratio of 4.8 per cent compared to 6.1 per cent as at Dec 31, 2016. The lower NPL ratio was due to the sale of NPLs in 2017, more efficient risk management policies, and improved asset quality management and loan collection processes.
CIMB Thai’s loan loss coverage ratio increased to 93.2 per cent yo-y from 77.3 per cent at the end of December 2016.
Total provisions came in at 9.9 billion baht which was 3.7 billion baht more than the Bank of Thailand’s reserve requirements.