PETALING JAYA: CIMB Thai Bank PCL posted a net profit of 2.4 billion baht (THB) for the financial year ended Dec 31, 2021 (FY21), an increase of 89.1% year-on-year (YoY), compared to 2020.

       In a statement, president and chief executive officer Paul Wong Chee Kin said the improvement was mainly attributed to better cost controls resulting in an 8.1% decline in operating expenses and a 25.7% decrease in expected credit losses, despite a 3.9% drop in operating income.

       On a YoY basis, the bank’s operating income declined by 3.9% to THB 14.34 billion from the drop in net interest income of THB 988.5 million, or 9.0%, due to the lower interest income on loans, as well as a decline in hire purchase business from the lower credit expansion.

       This was partially offset by the increase of THB 337.6 million, or 26.9%, in net fee and service income, driven by higher fee income from insurance and mutual fund brokerage.

       Other operating income increased by THB 71.2 million, or 2.6%, from an increase in gains on financial instruments measured at fair value through profit or loss.

       CIMB Thai said in FY21, operating expenses decreased by THB 723.3 million or 8.1%, largely due to better optimisation of cost management. This consequently improved the cost to income ratio to 57.0% in 2021 compared to 59.6% in 2020.

       Net interest margin (NIM) over earning assets stood at 3.1% in 2021, compared to 3.2% in 2020, arising from lower interest income on loans and the hire purchase business.

       As at Dec 31, 2021 total gross loans (inclusive of loans guaranteed by other banks and loans to financial institutions) stood at THB 211.9 billion, a decrease of 6.6% from 2020.

       Deposits (inclusive of bills of exchange, debentures and selected structured deposit products) stood at THB 233.1 billion, a decrease of 7.1% from THB 250.9 billion as at end of December 2020.

       The modified loan to deposit ratio increased to 90.9% from 90.5% as at Dec 31, 2020.

       Gross NPLs stood at THB 7.9 billion, with a lower equivalent gross NPL ratio of 3.7% compared to 4.6% as at Dec 31, 2020.

       CIMB Thai Group’s loan loss coverage ratio as at 31 December 2021 stood at 117.5% from 93.3% at the end of December 2020.

       The total allowance for expected credit losses stood at THB 8.3 billion, THB 1.5 billion over the Bank of Thailand’s reserve requirements.

       Total consolidated capital funds as at Dec 31, 2021 stood at THB 54.4 billion. The BIS ratio stood at 22.4%, 16.3% of which comprised Tier-1-capital.