KUALA LUMPUR (Oct 19): CIMB Thai Bank PCL said its net profit for the third quarter ended Sept 30, 2018 rose 131% to 177.26 million baht (RM22.6 million), from 76.54 million baht a year earlier, on higher interest income and lower impairment losses.

CIMB Thai, owned 94.11% by CIMB Group Holdings Bhd, said interest income during the quarter rose 6% to 3.91 billion baht, from 3.69 billion baht previously.

Quarterly operating income however, fell 5% to 3.29 billion baht, from 3.46 billion baht a year ago.

For the cumulative nine months, net profit fell 4% to 537.38 million baht, from 554.38 million baht.

Operating income however rose 3% to 10.09 billion baht, from 9.84 billion baht.

In a statement, CIMB Thai president and chief executive officer Kittiphun Anutarasoti attributed the increase in operating income to higher net interest income mainly from loan expansion, while net fee and service income decreased due to higher fees and service expenses.

He said operating expenses increased by 586.2 million baht or 10.8%, mainly from higher personnel cost, in line with the bank’s Fast Forward expansion strategy and loss on sale of properties for sale.

As at Sept 30, 2018, total gross loans (inclusive of loans guaranteed by other banks and loans to financial institutions) stood at 219.9 billion baht, marking an increase of 3.3% from Dec 31, 2017.

Deposits, meanwhile, stood at 231.6 billion baht, an increase of 5.3% from 220.1 billion baht.

“The gross non-performing loans (NPL) stood at 12.6 billion baht, with an equivalent gross NPL ratio of 5.7% from 4.8% as at Dec 31, 2017. The increase was attributed to commercial banking loans in 9M2018 and the sale of NPLs in 2017,” the statement added.

Shares of CIMB Group closed down one sen or 0.17% at RM6.02 today, with 7.41 million shares done for a market capitalisation of RM56.38 billion.