CIMBT net profit surges eight-fold
CIMB Thai Bank (CIMBT), a unit of Malaysia’s CIMB Group Holding Bhd, posted an almost eight-fold increase in its secondquarter net profit due largely to lower loanloss provisions, and increases in net interest and non-interest income.
The small bank’s unreviewed net profit amounted to 357 million baht for the Aprilto-June quarter, compared with 39.9 million over the same period last year, it said in financial statements filed with the Stock Exchange of Thailand (SET) yesterday.
Its net interest income for the three months to June edged up by 0.8% over the same period last year to 2.51 billion baht, while its net fee and service income surged 16.3% on year to 470 million baht.
The bank set aside 1.14 billion baht for loan impairment charges during the second quarter, down from 1.38 billion over the same period last year.
Its consolidated non-performing loans fell to 11.3 billion baht at the end of June from 12.7 billion at end-2016 due to its recent disposal of some bad loans and debt restructuring. Gross NPL ratio also fell to 5.4% of its outstanding loans at the end of March from 6.1% at the end of December.
CIMBT’s stunning quarterly net profit comes on the heels of small and midsize banks’ improved earnings. Recently, Thanachart Bank, TMB Bank and Tisco
Financial Group saw their second-quarter net profit increase.
During January to June, CIMBT’s net profit jumped by 30.1% year-on-year to 478 million baht due to declines in expenses for a loan-loss buffer and operating expenses, the bank said in a separate statement.
The lender’s net interest margin (NIM) inched up to 3.81% for the first six months of this year from 3.79% over the corresponding
period last year.
Its capital adequacy ratio stood at 18.6% of risk-weighted assets, of which 13.2% was first-tier capital.
“We’re satisfied with the first-half earnings. Net profit increased due to higher NIM and the lower loan-loss provision. Operating income was steady, while outstanding loans fell slightly as some corporate loans were paid off. Asset quality of both retail and corporate loans also improved. Overall, the bank will return to profitability in 2017,” president and chief executive Kittiphun Anutarasoti said in the statement.
CIMBT reported a net loss of 630 million baht last year due to a 66.6% rise in impairment charges for loan losses.
CIMBT shares closed yesterday on the SET at 1.08 bath, up three satang, in trade worth 42.3 million baht.