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CIMB Thai Bank's 1H2014 Net Profit Up 15 Per Cent To 625.0 Million Baht
The group's consolidated operating income rose by 1,091.1 million, or 27 per cent to 5,133.2 million baht, it said in a statement.
It said the impressive result was mainly from strong loans growth, corporate finance and advisory and securities issuing, trading and foreign exchange transactions.
President and Chief Executive Officer Subhak Siwaraksa said the increase in income was mainly attributed to a growth in other operating income, net interest income and net fee and service income of 58.8 per cent, 24.4 per cent and 12.8 per cent respectively.
Operating expenses grew at 18.7 per cent, whilst there was a 85.6 per cent YoY increase in provisions, he added.
Subhak said the higher provisions are reflective of loan expansion and a more prudent impairment stance in light of possible negative changes in the economic environment.
Operating expenses grew by 541.9 million or 18.7 per cent year-on-year to 3,439.7 million baht, mainly from employee expenses and other operating expenses resulting from business growth momentum.
The cost to income ratio decreased to 67.0 per cent compared to 71.7 per cent in the first six months of last year as a result of improved income and better cost management.
The bank's capital expenditure continues to be effectively managed and reflects the ongoing investment expansion and strategic systems enhancement.
CIMB Thai Bank's net interest margin (NIM) over interest earning assets increased by 13 basic points to 3.35 per cent from January to June this year from 3.22 per cent in the corresponding period of last year on the back of better controls on the cost of funds.
As at 30 June 2014, CIMB Thai total gross loans stood at 178.9 billion baht, marking an increase of 4.0 per cent from Dec 31, 2013.
In addition, deposits, bill of exchanges and debentures stood at 192.2 billion baht, an increase of 0.8 per cent from 190.6 billion at the end of December 2013.
As a result, the loan to deposit ratio (including bill of exchanges and debentures) stood at 93.1 per cent from 90.3 per cent as at Dec 31, 2013.
The gross non-performing loans (NPL) stood at 5.6 billion baht, with an equivalent gross NPL ratio of 3.1 per cent.
This is an increase from 2.5 per cent as at Dec 31, 2013 due to the impact of the economic slowdown on the borrowers' repayment ability.
CIMB Thai Group's loan loss coverage ratio decreased to 100.8 per cent as at June 30, 2014 from 107.8 per cent at the end of December 2013.
As at June 30, 2014, its total provisions stood at 5.6 billion baht, showing an excess of 2.6 billion baht over the Bank of Thailand's reserve requirements.
Total consolidated capital funds as at June 30, 2014 stood at 27.1 billion baht.
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