KUALA LUMPUR (Oct 20): CIMB Thai Bank Public Co Ltd, a 93.7%-owned unit of CIMB Group Holdings Bhd (CIMB), saw its net profit for the third quarter ended Sept 30, 2015 (3QFY15) surged 81.18% to 498.38 million baht (RM60.25 million) from 275.08 million baht (RM33.25 million) a year ago.

In a filing with Bursa Malaysia today, the country's second largest financial institution said CIMB Thai's net interest income grew 4.54% to 3.68 billion baht (RM440 million) from 3.52 billion baht (RM430 million) a year ago.

For the cumulative nine months (9MFY15), CIMB Thai posted a 6% decrease in net profit to 846.54 million baht (RM102.33 million) from 900.41 million baht (RM108.84 million) a year ago, mainly attributed to a 105.4% on year increase in provisions due to prevailing weaker economic conditions.

Year-to-date net interest income increased 6.5% to 6.16 billion baht (RM740 million) from 5.78 billion baht (RM700 million), resulting from loan expansion.

Net fee and service income increased by 20.3% to 1.34 billion baht (RM160 million) from 1.08 billion baht (RM130 million), underpinned by higher loans related fees, mutual funds and corporate finance.

Total other operating income, which is largely derived from treasury businesses and dividend income, soared 94.8%.

Its gross non-performing loans (NPL) stood at 8.6 billion baht (RM1.04 billion).

Commenting on this, CIMB Thai president and chief executive officer Subhak Siwaraksa said the banking group's operating expenses grew 2.1% from higher taxes and duties, directors' remuneration and employee expenses, partially offset by a decrease in other expenses arising from gains on sale of properties.

He said the cost to income ratio decreased to 57.3% in 9MFY15 compared to 67.3% in 9MFY14 as a result of better cost management and increased income.

"Net Interest Margin (NIM) over earning assets stood at 3.16% in 9MFY15, compared to 3.36% from 9MFY14, arising from higher low yielding assets and increased deposit costs," he added.

As at Sept 30, total gross loans (inclusive of loans guaranteed by other banks and loans to financial institutions) stood at 199.9 billion baht (RM24.16 billion), marking an increase of 4.8% from Dec 31, 2014.

Deposits stood at 217.5 billion baht (RM26.29 billion), an increase of 2.7% from 211.7 billion baht (RM25.59 billion) at the end of December 2014.

As at Sept 30, CIMB Thai's total provisions stood at 7.6 billion baht (RM920 million) showing an excess of 2.5 billion baht (RM300 million) over Bank of Thailand's reserve requirements.

Total consolidated capital funds stood at 32 billion baht (RM3.87 billion).

Going forward, CIMB Thai said it will continue to exercise high credit risk underwriting standards and risk management policies.

It will also focus on improving productivity, monitoring collection and managing all accounts closely and effectively.

Shares in CIMB were down 17 sen or 3.36% to close at RM4.89 today, for a market capitalisation of RM42.11 billion.

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