CIMB Thai to raise up to 5.51 bln baht capital
KUALA LUMPUR: CIMB Group Holdings Bhd’s consumer banking arm in Thailand, CIMB Thai Bank, is proposing to raise up to 5.51 billion baht (100 baht = RM12.57) via 5.51 billion right issuance of new shares worth one baht per share.
The proposal was backed by strong commitment from CIMB Group to reinforce the Thai operations’ capital position and balance sheet to support business growth, CIMB Thai said in a filing to Bursa Malaysia yesterday.
CIMB Thai president/ chief executive officer, Kittiphun Anutarasoti, said the resolutions made at the board of directors’ meeting held yesterday proposed that the bank’s shareholders’ meeting considers and approves the increase in its registered capital by 2.75 billion baht to 15.14 billion baht.
He said the proposed rights offering would strengthen the bank’s Bank of International Settlements ratio to 18.5 per cent from the current 16.1 per cent thus further reinforcing its capital position and balance sheet going
Our strategic priorities for 2017 are anchored on the five C’s – customer, culture, compliance, cost and capital. Kittiphun Anutarasoti, CIMB Thai president/chief executive officer
into 2017.
“Our strategic priorities for 2017 are anchored on the five C’s – customer, culture, compliance, cost and capital.
The bank targets a modest loan growth of 5-10 per cent.
“With the board’s guidance and continued support from CIMB Group, we are confident of returning the bank to profitability in 2017,” Kittiphun said.
CIMB group chief executive, Tengku Datuk Seri Zafrul Aziz, said given the gradual pace of economic recovery in Thailand and challenging operating conditions, CIMB Thai recorded elevated loan provisions in the fourth quarter 2016.
“We are confident, however, that CIMB Thai can return to profitability in 2017 and we are fully supportive of CIMB Thai’s business plans, including the rights issue,” he said.
In the unaudited financial results ended Dec 31, 2016, CIMB Thai group’s consolidated operating income rose 5.7 per cent year-onyear (yoy) to 12.93 billion baht.
It was derived from a 16.4 per cent growth in net interest income and a 11.4 per cent expansion in net fee and service income, while other income dropped by 37.7 per cent.
As at end-2016, total gross loans inclusive of loans guaranteed by other banks and loans to financial institutions stood at 206.4 billion baht, up 3.7 per cent yoy.
The gross non-performing loans (NPLs) stood at 12.7 billion baht, with an equivalent gross NPL ratio of 6.1 per cent.
This was an increase from 3.1 per cent yoy due to slower repayment ability from borrowers in certain sizable corporate accounts. — Bernama