CIMB THAI BANK RECORDS 954.8 MLN THAI BAHT NET PROFIT FOR 6M2021

KUALA LUMPUR, July 21 -- CIMB Thai Bank PCL’s net profit for the six months (6M) period ended June 30, 2021 (6M2021) decreased by 431.1 million Thai baht (100 Thai baht = RM12.90) or 31.1 per cent year-on-year (y-o-y) to 954.8 million.

CIMB Thai Bank is 94.83 per cent indirectly-owned by CIMB Group Holdings Bhd’s (CIMB).

In a filing with Bursa Malaysia today, president and chief executive officer Paul Wong Chee Kin said the lower net profit was mainly from the 19.1 per cent y-o-y increase in expected credit losses, reflected by the elevated provisions from economic uncertainty and credit migration from customers affected by the COVID-19 pandemic.

He said in the same period, CIMB Thai Bank’s consolidated operating income decreased 644.2 million Thai baht or 8.1 per cent y-o-y to 7.28 billion Thai baht. 

“The lower operating income was attributed to a 11.7 per cent drop in net interest income and 2.3 per cent decrease in other income, offset by a 8.9 per cent expansion in net fee and service income,” he said.

On a y-o-y basis, he said net fee and service income increased by 61.6 million Thai baht or 8.9 per cent, arising from higher insurance brokerage and underwriting income, while net interest income decreased by 672.5 million Thai baht or 11.7 per cent due to lower interest income on loans and hire purchase business from the lower credit expansion.

He said operating expenses decreased by 579.9 million Thai baht or 12.3 per cent largely due to better cost management and better optimisation of resources and the cost to income ratio improved to 56.7 per cent in 6M2021 compared to 59.5 per cent in 6M2020.

Wong said net interest margin (NIM) over earning assets stood at 3.2 per cent in 6M2021 compared with 3.3 per cent in 6M2020, resulting from lower interest income on loans and hire purchase business.

He said the non-performing loans (NPL) stood at 10.6 billion Thai baht, translating to a higher impaired loan ratio of 4.8 per cent compared with 4.6 per cent as at Dec 31, 2020 due to the decrease in total loan outstanding balance despite the NPL not significantly changed.

“However, CIMB Thai Bank continues to exercise high credit risk underwriting standards and risk management policies. 

“The bank is continuing its focus on improving productivity and monitoring collection,” he said.

Wong said CIMB Thai Bank’s loan loss coverage ratio stood at 101.4  per cent as at June 30, 2021 from 93.3 per cent at the end of December 2020. 

He said as at June 30, 2021, the total allowance for expected credit losses stood at 9.9 billion Thai baht, 1.8 billion Thai baht over the Bank of Thailand’s reserve requirements.

He added that the total consolidated capital funds as at June 30, 2021 stood at 53.4 billion Thai baht. 

-- BERNAMA