CIMB Thai's net profit soars on shared gains, sale of stake

Subhak Siwaraksa, president and CEO, said consolidated operating income for CIMB Thai Group also soared by 38.1 per cent to Bt6.4 billion from the same period last year, thanks to higher net interest, net fee and service income and gains on trading and foreign exchange transactions.
Net interest income rose 7.1 per cent on loan expansion. Net fee and service income increased by 25.5 per cent on higher corporate finance and mutual fund fees.
Non-interest and fee income was up 205.4 per cent on shared gains from TAMC and a gain on the sale of an investment in a CIMB Thai Bank subsidiary.
The net interest margin dropped to 3.20 per cent from 3.63 per cent after additional deposit insurance was introduced in May. The regulation applies retrospectively on deposits held from January. Its margin was also eroded by higher rates for deposits and borrowing through bills of exchange, resulting from intense competition in the deposit market.
As of September 30, gross loans stood at Bt127.0 billion, up 6.2 per cent from last year, on retail portfolio expansion. Deposits and bills of exchange were Bt150.3 billion, an increase of 11.8 per cent from Bt134.4 billion last year. The loan-to-deposit ratio, including bills of exchange, was 90.7 per cent.
Gross non-performing loans were 3.5 per cent of outstanding loans, up slightly from 3.4 per cent last year.
Operating expenses increased by 13.8 per cent or Bt481.7 million on year mainly due to the increase in premises and equipment expenses, and taxes and duties expenses arising from the shared gain from TAMC and legal claims. The cost-to-income ratio was 61.7 per cent in the first nine months compared to 76.3 per cent last year.
The BIS ratio was 15.66 per cent and Tier 1 ratio was 11.23 per cent.