CIMB Thai net profit lower in first nine months

KUALA LUMPUR: CIMB Thai Bank PCL’s net profit for the first nine months ended Sept 30, 2018 fell 3.1%, or 17 million baht (RM2.16mil), year-on-year to 537.4 million baht (RM68.5mil).

Profit before tax rose by 5.9% y-o-y to 736.6 million baht, the bank said in a filing with Bursa Malaysia today.

President and chief executive officer Kittiphun Anutarasoti said this was mainly attributed to a 2.5% growth in operating income.

On a y-o-y basis, consolidated operating income for the Thai group increased by 246.6 million baht to 10,085.2 million baht due to higher net interest income of 338.4million baht, a 4.4% rise from a year ago.

A 10.3% decline in provisions also helped to boost operating income but this was partially offset by a 10.8% increase in operating expenses and lower net fee and service income.

The bank’s gross non-performing loans (NPL) stood at 12.6 billion baht as at Sept 30, 2018, with an equivalent gross NPL ratio of 5.7% compared with 4.8% as at Dec 31, 2017.

“The increase was attributed to commercial banking loans in the nine months of 2018 and the sale of NPLs in 2017,” he said.