Thursday 28 Mar 2024
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KUALA LUMPUR (Oct 19): CIMB Thai Bank PCL, a subsidiary of CIMB Group Holdings Bhd, announced today its net profit for the first nine months of its financial year 2017 came in 30% lower year-on-year (y-o-y), as provisions grew because of higher non-performing loans.

CIMB Thai, which is 94.11%-owned by CIMB Group, said its nine months ended Sept 30, 2017 recorded a net profit of THB243.9 million, compared to THB554.4 million a year ago, as provisions rose 9.8% y-o-y.

"Operating income rose by THB145.3 million (or 1.5%) to THB9.84 billion, mainly contributed by net interest income and net fee and service income growth," its statement to Bursa Malaysia today showed.

It said net interest income grew 3.6% or THB266.7 million, mainly driven by lower interest expenses, while higher advisory, mutual funds and hire-purchase fees resulted in 21% y-o-y improvement in net fee and service income.

"Pre-provision operating profit increased 0.6% y-o-y to THB4.41 billion from higher income and a 2.3% y-o-y growth in operating expenses," it said.

It also noted that net interest margin over earning assets stood at 3.88% in 9M2017, compared to 3.76% from 9M2016, as a result of more efficient management of funding cost.

"The gross NPL (non-performing loan) stood at THB12.2 billion, with a lower equivalent gross NPL ratio of 5.7% compared to 6.1% as at Dec 31, 2016.

"The lower NPL ratio was mainly due to the sale of some NPLs in 1Q17 (first quarter of 2017), more efficient risk management policies and improved asset quality management and loan collection processes," said CIMB Thai president and CEO Kittiphun Anutarasoti.

He also noted that CIMB Thai Group's loan loss coverage ratio increased to 85.1% as at Sept 30, 2017 from 77.3% at end-December 2016.

"As at Sept 30, 2017, our total provisions stood at THB10.3 billion showing an excess of THB3.6 billion over Bank of Thailand's reserve requirements.

"Total consolidated capital funds as at Sept 30, 2017 stood at THB43.8 billion. BIS ratio stood at 18.0%, 12.7% of which comprised Tier-1-capital," he added.

CIMB Thai's financial statements showed that its third quarter net profit contracted to THB76.54 million from THB431.07 million a year earlier, as the group recorded higher employee expenses, as well as higher bad and doubtful debts and impairment losses.

The quarter's total operating income, however, rose to THB3.46 billion from THB3.21 billion, thanks mainly to improved net interest income, net fee and service income, and gains on tradings and foreign exchange translations.

At 3.26pm, shares in CIMB Group rose three sen or 0.49% to RM6.18, after 16.95 million shares were traded, giving it a market capitalisation of RM56.03 billion.

 

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