CIMB Thai’s Q2 net profit soars nearly nine times

PETALING JAYA: CIMB Thai Bank PCL’s net profit leaped close to nine times to 356.64 million baht (RM45.4 million) for the second quarter ended June 30, 2017 against 39.89 million baht, underpinned by lower bad and doubtful debts, impairment losses, operating expenses and income tax expenses.

Total operating income for the quarter under review rose 2.5% to 3.25 billion baht from 3.17 billion baht.

CIMB Group Holdings Bhd owns a 94.11% indirect stake in CIMB Thai.

As at June 30, 2017, CIMB Thai’s total gross loans (inclusive of loans guaranteed by other banks and loans to financial institutions) stood at 202.4 billion baht, a 2% decrease from Dec 31, 2016.

Gross non-performing loans stood at 11.3 billion baht, with an equivalent gross NPL ratio of 5.4% from 6.1% as at Dec 31, 2016. The lower NPL ratio was mainly due to the sale of some NPLs in Q1, more efficient risk management policies, continued resolution of the bank’s NPLs and improvements in loan collection processes.

CIMB Thai’s loan loss coverage ratio increased to 84% as at June 30, 2017 from 77.3% at the end of December 2016. As at 30 June 2017, total provisions stood at 9.5 billion baht, translating to a 3.3 billion baht excess over the Bank of Thailand’s reserve requirements.

CIMB Thai’s first-half net profit soared 30.1% to 477.84 million baht versus 367.23 million baht. Total operating income came in at 6.38 billion baht, 1.6% lower than the 6.49 billion baht made in the same period a year ago.

CIMB Group shares rose nine sen to RM6.42 on 12.89 million units traded, giving it a market capitalisation of RM58.11 billion.