On a YoY basis, operating income grew by THB 1,331 million, or 9.7% to THB 15,102.6 million attributed to other operating income growth of THB 1,388.8 million or 49.4% from higher net gains on financial instruments measured at fair value through profit or loss, bad debt recovery and gains on investment, partially offset by lower gains on sale of non-performing loans. Net fee and service income increased by THB 237.4 million or 19.9% largely attributed to higher fee income from goods and services payments, fund transfers and collections. These were partially offset by lower net interest income of THB 295.2 million or 3.0% YoY as interest expense growth exceeded interest income growth.
Operating expenses increased by THB 224.7 million or 2.6%, mainly from higher impairment loss on properties for sale, partially offset by lower employee expenses. The cost to income ratio improved to 58.7% compared to 62.7% in 2023 as a result of stronger operating income growth compared to operating expenses.
Net interest margin (NIM) over earning assets stood at 2.2% in 2024, compared to 2.6% in 2023, as a result of higher cost of funds.
As at 31 December 2024, total gross loans (inclusive of loans guaranteed by other banks and loans to financial institutions) stood at THB 251.3 billion, an increase of 2.6% from 31 December 2023. Deposits (inclusive of bills of exchange, debentures and selected structured deposit products) stood at THB 324 billion, an increase of 4.4% from THB 310.4 billion in the previous year. The modified loan to deposit ratio was lower at 77.6% compared to 78.9% as at 31 December 2023.
Gross non-performing loans (NPL) stood at THB 6.7 billion, with a lower equivalent gross NPL ratio of 2.6% compared to 3.3% at the end of 2023. The lower NPL ratio was mainly attributed to the sale of NPLs in 2024, improved efficiency in risk management policies, improved asset quality management and loan collection processes.
CIMB Thai Group's loan loss coverage ratio was 137.9% compared to 124.2% YoY. Total allowance for expected credit losses stood at THB 9.0 billion, THB 1.5 billion over the Bank of Thailand's reserve requirements.
Total consolidated capital funds as at 31 December 2024 stood at THB 59.8 billion. The BIS ratio stood at 21.6%, of which 17.0% comprised Tier-1-capital.
Source: CIMB Thai Bank