Mitihoon – Mr. Wut Thanittiraporn, President and Chief Executive Officer, CIMB Thai Bank PCL (CIMB Thai) commented on the unaudited consolidated financial results for the six months ended 30 June 2025. CIMB Thai Group recorded a consolidated net profit of THB 1,012.6 million, a year-on-year (“YoY”) decrease of THB 281.9 million or 21.8%. The decline in 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. 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.
Profit before tax (“PBT”) decreased by THB 342.1 million or 21.2% YoY to THB 1,268.9 million, due to a 13.6% decline in net interest income and a 86.2% rise in expected credit loss. This was partially offset by a 19.1% decline in operating expenses and higher net fee and service income as well as other income of 4.8% and 21.5% respectively.
On a YoY basis, CIMB Thai Group’s consolidated operating income contracted THB 257.8 million or 3.7% from THB 6,780.5 million from lower net interest income of THB 646.0 million or 13.6%. This was mainly from lower interest income on loans, partially offset by higher net fee and service income of THB 30.5 million or 4.8%. Other operating income increased by THB 357.8 million 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.
Operating expenses contracted THB 832.7 million 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. This consequently improved the cost to income ratio to 52.1% in 6M2025 compared to 62.0% in 6M2024.
Net Interest Margin (NIM) over earning assets stood at 1.9% in 6M2025, compared to 2.2% in 6M2024, arising from lower interest income on loans.
As at 30 June 2025, total gross loans (inclusive of loans guaranteed by other banks and loans to financial institutions) stood at THB 244.2 billion, a decrease of 2.8% from 31 December 2024. Deposits (inclusive of bills of exchanges, debentures and selected structured deposit products) stood at THB 316.5 billion, a decrease of 2.3% from THB 324.0 billion as at end December 2024. Meanwhile the modified loan to deposit ratio was slightly lower at 77.2% compared to 77.6% as at 31 December 2024.
The gross non-performing loans (NPL) stood at THB 6.3 billion, with a flat gross NPL ratio of 2.6%. 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.
CIMB Thai Group’s loan loss coverage ratio stood at 155.9% as at 30 June 2025 from 149.0% as at 31 December 2024. Total allowance for expected credit losses stood at THB 9.7 billion, THB 1.5 billion over the Bank of Thailand’s reserve requirements.
Total consolidated capital funds as at 30 June 2025 stood at THB 60.6 billion. The BIS ratio stood at 21.7%, of which 17.0% comprised Tier-1-capital.
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