CIMB Thai 1Q net profit up 92.4% on year at THB325m

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KUALA LUMPUR (April 18): CIMB Group Holdings Bhd's 94.83%-owned subsidiary CIMB Thai Bank PCL's net profit rose 92.4% to THB325.01 million (about RM42 million) in the first quarter ended March 31, 2019 (1QFY19) from THB168.89 million a year earlier on growth in operating income and lower provisions.

In a statement today, CIMB Thai said operating income grew 3.4% while provisions dropped 17.4%.

"On a YoY basis, operating income rose by THB114.5 million, or 3.4% to THB3.497 billion from an increase of THB111.8 million or 4.3% in net interest income, mainly from loan expansion and higher interest income on investments. Other operating income rose by THB10.7 million or 3.4% from an increase in gains on sale of NPLs (non-performing loans) and higher gains on trading and foreign exchange transactions, partially offset by higher losses on financial instruments designated at fair value through profit or loss.

"The gross NPL stood at THB10.0 billion, with a stable gross NPL ratio of 4.3%, unchanged from Dec 31, 2018. CIMB Thai continues to exercise high credit risk underwriting standards and risk management policies. The bank also focuses on improving productivity and monitoring collection," CIMB Thai said.