KUALA LUMPUR: CIMB Thai Group’s net profit for the three months ended March 31, surged 210.9% year-on-year (y-o-y) to 1.06 billion baht (RM134.44mil) on the back of better cost controls.

       During the quarter under review, operating expenses decreased 14% on the back of better cost management, while the cost-to-income ratio improved to 51.4% compared with 59.3% in the year-ago quarter.

       “We are pleased to have made considerable progress on our overall performance despite the uncertain recovery surrounding the Covid-19 pandemic, driven by our cost discipline and improved asset quality, and we also saw positive growth momentum in the first quarter of 2022,” said CIMB Thai Bank PCL president and CEO Paul Wong Chee Kin (pic) in a statement.

       He added that the earnings improvement was achieved despite a marginal 0.8% drop in operating income to 3.48 billion baht (RM441.1mil)

       “This was due to lower interest income on loans and hire purchase business, as well as drop in net fee and service income by 26.7 million baht (RM3.4mil) or 6.5% from higher fee and service expenses.

       “This was partially offset by the increase in other operating income by 153.1 million baht (RM19.4mil) or 24.1% due to an increase in gains on financial instruments measured at fair value through profit or loss, and other income,” he said.

       As a result of the lower interest income on loans and hire purchase business, net interest margin fell to 2.8% in 3M22 compared with 3.1% in 3M21.

       As at March 31, 2022, total gross loans stood at 215 billion baht (RM27.3bil) which was 1.5% higher from Dec 31, 2021.

       Deposits increased 5.4% to 252.5 billion baht (RM32bil) over the three months period.

       The modified loan-to-deposit ratio decreased to 85.2% as at March 31, 2022, from 88.5% three months prior.

       Meanwhile, gross non-performing loans (NPLs) stood at 8.4 billion baht (RM1.07bil) with a higher gross NPL of 3.8% from 3.7% as at Dec 31, 2021 due to the sale of NPLs in 2021.The bank’s loan loss coverage ratio stood at 112% as at the end of 1Q22, compared to 117.5% in Dec 31, 2021.

       Total allowance for expected credit losses stood at 8.6 billion baht (RM1.09bil), 1.5 billion baht (RM190.3mil) over the Bank of Thailand’s reserve requirements.

       Total consolidated capital funds as at March 31, 2022. stood at 53.6 billion baht (RM6.8bil).

       The BIS ratio stood at 21.9%, of which 15.9% comprised Tier-1-capital.

       Moving forward, Wong said CIMB Thai’s 2022 strategy is to remain focused on driving sustainable financial solutions and personalised services through its key business drivers – consumer banking, wholesale banking and treasury and markets – while leveraging its Asean network and digital platforms.