CIMB THAI posts 1Q2017 net profit of THB 121.2 million.

Stocks and Financial Services Press Releases Thursday April 20, 2017 12:38
Bangkok--20 Apr--CIMB Thai Bank
  • 1Q2017 consolidated operating income declined by 5.6% YoY, due mainly to a drop in other income with slower treasury transactions and absence of gains on available-for-sale securities.
  • Net profit posted a YoY decrease mainly from increase in provisions.
  • Net fee and service income was in growth pace, up by 27.6% attributable to increase in fees from debt capital market, mutual fund and hire-purchase.
  • Net interest income (NII) picked up by 3.0% from better funding cost management.
  • Net interest margin (NIM) improved to 3.77% from 3.72% a year earlier as resulted from more efficient funding cost management.
1Q2017 Financial Results

Mr. Kittiphun Anutarasoti, President and Chief Executive Officer of CIMB Thai Bank PCL stated that according to the unaudited financial results for the three months ended 31 March 2017, CIMB Thai Group's consolidated operating income decreased by THB 184.7 million or 5.6% year-on-year ("YoY") to THB 3,129.9 million. The lower operating income was attributed to a 59.3% drop in other income, offset by 3.0% growth in net interest income and a 27.6% expansion in net fee and service income. Pre-Provision Operating Profit decreased by 11.3% YoY to THB 1,382.6 million, mainly due to lower operating income, offset by a 0.5% YoY decrease in operating expenses. Net profit decreased by THB 206.1 million or 63.0% YoY to THB 121.2 million, mainly from a 7.0% YoY increase in provisions, due to higher YoY NPLs during the period.

On a YoY basis, net fee and service income increased by THB 92.4 million or 27.6%, arising from higher fees from debt capital market, hire-purchase and financial lease and mutual fund. Net interest income increased by THB 72.3 million or 3.0%, from better funding cost management. Other operating income decreased by THB 349.4 million or 59.3% due to slower treasury business activity and the absence of gains from sales of available for sale securities, partially moderated by higher other operating income.

Operating expenses decreased by THB 8.0 million or 0.5%, mainly from lower premises and equipment expenses and taxes and duties, partially offset by higher employee expenses. The cost to income ratio increased to 55.8% in 1Q17 compared to 53.0% in 1Q16 as a result of the lower operating income.

Net Interest Margin (NIM) over earning assets stood at 3.77% in 1Q17, compared to 3.72% in 1Q16, from more efficient funding cost management.

As at 31 March 2017, total gross loans (inclusive of loans guaranteed by other banks and loans to financial institutions) stood at THB 200.6 billion, a 2.8% decrease from 31 December 2016. Deposits (inclusive of Bill of Exchanges, Debentures and selected Structured Deposit Products) stood at THB 217.3 billion, a decrease of 2.8% from THB 223.5 billion at the end of December 2016. The Modified Loan to Deposit Ratio was slightly lower at 92.3% compare to 92.4% as at 31 December 2016.

The gross non-performing loans ("NPL") stood at THB 11.2 billion, with an equivalent gross NPL ratio of 5.3% from 6.1% as at 31 December 2016. The lower NPL ratio was mainly due to the sale of some NPLs in 1Q17, more efficient risk management policies, continued resolution of the Bank's NPLs and improvements in loan collection processes.

CIMB Thai Group's loan loss coverage ratio increased to 81.2% as at 31 March 2017 from 77.3% at the end of December 2016, adhering to a more conservative reserve policy. As at 31 March 2017, total provisions stood at THB 9.0 billion, translating to a THB3.4 billion excess over the Bank of Thailand's reserve requirements.

Total consolidated capital funds as at 31 March 2017 stood at THB 37.9 billion. The BIS ratio stood at 16.7%, of which 11.1% comprised Tier-1-capital.

Latest Press Release

Asia Plantation Capital Announced as #Forestry Investment Company of the Year# by The European Magazine

For the third successive year, Asia Plantation Capital has garnered the title of 'Forestry Investment Company of the Year' at The European Magazine's Business Awards 2017. Asia Plantation Capital is proud to have been recognised yet again for its...

Avanti Communications Rating Withdrawn Due To Lack Of Information

LONDON (S&P Global Ratings) Oct. 20, 2017--S&P Global Ratings today said it withdrew its 'SD' (selective default) corporate credit rating on Avanti Communications Group PLC due to a lack of sufficient information. The action follows our repeated...

Mitsui Life Insurance Ratings Affirmed At #A# With Stable Outlook

TOKYO (S&P Global Ratings) Oct. 20, 2017--S&P Global Ratings today said it has affirmed its 'A' insurer financial strength and long-term issuer credit ratings on Japan-based Mitsui Life Insurance Co. Ltd. Our outlook on the ratings remains...

Russia-Based Ingosstrakh Insurance #BB+# Rating Affirmed On Strengthened Capital Outlook Stable

MOSCOW (S&P Global Ratings) Oct. 20, 2017--S&P Global Ratings said today that it affirmed its 'BB+' long-term credit ratings on Russia-based Ingosstrakh Insurance Co. The outlook is stable. The affirmation reflects our view of Ingosstrakh's...

Telepizza Stengthens its Presence in Russia: Converts 15 Stores in Saint Petersburg and Becomes The Market Leader in the Northwest of the Country

- Telepizza has completed the conversion of 15 stores in Saint Petersburg through a Master Franchise agreement with WWP, becoming the market leader in the region - Telepizza's Master Franchisee WWP, one of the largest QSR operators in the country, has...

Related Topics