Thursday 28 Mar 2024
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This article first appeared in The Edge Financial Daily, on October 21, 2015.

 

KUALA LUMPUR: CIMB Thai Bank Public Co Ltd, a 93.7%-owned unit of CIMB Group Holdings Bhd, saw its net profit for the third quarter ended Sept 30, 2015 surge 81.18% to 498.38 million baht (RM59.91 million) from 275.08 million baht a year ago.

In a filing with Bursa Malaysia yesterday, the country’s second-largest financial institution said CIMB Thai’s net interest income grew 4.54% to 3.68 billion baht from 3.52 billion baht a year ago.

For the cumulative nine months, CIMB Thai posted a 6% decrease in net profit to 846.54 million baht from 900.41 million baht a year ago, mainly attributed to a 105.4% year-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 from 5.78 billion baht, resulting from loan expansion.

Net fee and service income increased by 20.3% to 1.34 billion baht from 1.08 billion baht, underpinned by higher loan-regulated fees, mutual funds and corporate finance.

Its gross non-performing loans stood at 8.6 billion baht.

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

Shares in CIMB (fundamental: 1.05; valuation: 1.65) were down 17 sen or 3.36% to close at RM4.89 yesterday, with a market capitalisation of RM42.11 billion.

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