CIMB Thai records 1H net profit of THB1.01bil
CIMB Thai Bank PCL, which is a 94.83%-owned subsidiary of CIMB Group, said the weaker performance was owing mainly to one-off items, namely the adjustment in revenue recognition based on the effective interest rate (EIR) methodology and the additional expected credit loss (ECL) overlay.
"These were proactive measures taken to strengthen the bank's financial resilience in the long term, and were not a result of any deterioration in asset quality.
"This reflects the bank's prudent risk management approach amid a still-uncertain economic environment," said CIMB Thai presdent and CEO Wut Thanittiraporn in his review of the results in a statement.
CIMB Thai's consolidated operating income contracted THB257.8mil or 3.7% on a year-on-year (y-o-y) basis. It said this resulted from a 13.6% decline in net interest income to THB646mil, caused mainly by lower interest income on loans, partially offset by higher net fee and service income of THB30.5mil.
Other operating income increased THB357.8 mil or 21.5%, contributed by higher gains on investments, partially offset by lower gains on financial instruments measured at fair value through profit or loss and sale of non-performing loans.
Meanwhile, operating expenses contracted THB832.7mil or 19.1%, from lower impairment loss on properties for sale and lower specific business tax as a result of lower interest income, partially offset by higher employee expenses.
The bank's cost-to-income ratio improved to 52.1% in 6M25 as compared to 62% in 6M24
Net Interest Margin (NIM) over earning assets stood at 1.9% in 6M25, compared to 2.2% in 6M24, arising from lower interest income on loans.
As at June 30, 2025, the bank's total gross loans stood at THB244.2bil, a decline of 2.8% from Dec 31, 2024. Deposits stood at THB316.5bil, a decrease of 2.3% from THB324bil as at end-December 2024.
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