CIMB Thai's 1h net profit down 21.8pct to 1.01bil baht in 1h 2025
In a filing with Bursa Malaysia today, CIMB Thai president and chief executive officer Wut Thanittiraporn said the lower net profit was primarily due 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.
He said CIMB Thai Group's 1H 2025 consolidated operating income fell by 257.8 million baht to 6.78 billion baht, mainly due to lower interest income on loans.
He added that this was partially offset by a higher net fee and service income, which increased 30.5 million baht.
Operating expenses for the period also declined by 832.7 million baht, or 19.1 per cent, due to lower impairment losses on properties for sale and lower specific business tax resulting from lower interest income, partially offset by higher employee expenses.
"This consequently improved the cost-to-income ratio to 52.1 per cent in 1H 2025 compared to 62.0 per cent in the first half of last year.
"Net interest margin (NIM) over earning assets stood at 1.9 per cent in 1H 2025, compared to 2.2 per cent in 1H 2024, arising from lower interest income on loans," Wut added.
As at June 30, 2025, total gross loans (inclusive of loans guaranteed by other banks and loans to financial institutions) stood at 244.2 billion baht, a decrease of 2.8 per cent from Dec 31, 2024.
Deposits (inclusive of bills of exchange, debentures and selected structured deposit products) stood at 316.5 billion baht, a decrease of 2.3 per cent from 324.0 billion baht as at end-December 2024.
The gross non-performing loans (NPL) stood at 6.3 billion baht, with a flat gross NPL ratio of 2.6 per cent.
"The gross NPL ratio is reflective of CIMB Thai Group's stringent credit risk underwriting, effective risk management policies, improvement in loan collection processes and the continued management of the Bank's NPLs," he said.
Wut said CIMB Thai Group's loan loss coverage ratio stood at 155.9 per cent as at June 30, 2025, from 149.0 per cent as at Dec 31, 2024.
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