KUALA LUMPUR, July 17 (Bernama) -- CIMB Thai Bank Public Company Ltd, a subsidiary of CIMB Group Holdings Bhd, recorded a consolidated net profit of 429.9 million Thai baht (100 baht=RM13.32)  for the first half ended June 30, 2019, a year-on-year (Y-oY) increase of 69.8 million baht or 19.4 per cent.

CIMB Thai is a 94.83 per cent indirect subsidiary of CIMB Group.

Acting President and Chief Executive Officer Adisorn Sermchaiwong said the improvement was mainly attributed to a 1.2 per cent Y-o-Y growth in operating income and a 31 per cent Y-o-Y decline in provisions, but partially offset by a 16.9 per cent Y-o-Y increase in operating expenses.

“As at June 30, 2019, total gross loans, inclusive of loans guaranteed by other banks and loans to financial institutions, stood at 237.3 billion baht, an increase of 4.2 per cent from Dec 31, 2018,� he said in a statement today.

He said deposits (inclusive of bills of exchange, debentures and selected structured deposit products) stood at 235.3 billion baht, a slight increase of 0.4 per cent from 234.3 billion baht as at end-December 2018.

However, he said net interest margin (NIM) over earning assets stood at 3.30 per cent during the period compared to 3.87 per cent in the same period last year, owing to higher cost of funds.

According to Sermchaiwong, gross non-performing loans (NPLs) for the first half stood at 10.7 billion baht with an equivalent gross NPL ratio of 4.5 per cent from 4.3 per cent as at Dec 31, 2018, arising from the slower repayment ability from a few corporate and retail accounts.

“CIMB Thai’s loan loss coverage ratio stood at 106.5 per cent as at June 30, 2019 compared to 107 per cent as at end- December 2018,� he added.

He added that as at June 30, 2019, the total provisions stood at 11.3 billion baht, translating to a 5.2 billion baht excess over the Bank of Thailand’s reserve requirements.

-- BERNAMA