KUALA LUMPUR: CIMB Thai Bank Pcl’s consolidated net profit grew 58.8% to 1.32 billion baht (RM130 million) for FY11 ended Dec 31 from 828.8 million baht for FY10. This was mainly due to the shared gain from Thai Asset Management Corp (TAMC) and gains from the sale of unsecured non-performing loans (NPL) to an affiliate company in 4QFY11.
In a statement to Bursa Malaysia yesterday, CIMB Thai said its total operating income rose 22.2% to 7.77 billion baht from 6.36 billion baht a year earlier, due to higher net interest income, gains on trading and foreign exchange transactions, and other operating income arising from TAMC and the NPL sale. These were offset by lower gains on investments and net fee and service incomes.
On the net interest income side, FY11 recorded an increase of 7.6% or 327.4 million baht, largely underlined by loan expansion.
“On the net fee and service income side, there was a dip of 4.9% or 45.1 million baht due to an increase in collection fee expense in 2011.
“There was an increase of 1.13 billion baht on the non-interest and fee income side, or 101.5%, largely due to the exceptional gain sharing from TAMC and gains from the sale of NPL,” CIMB said in its news release.
CIMB Thai’s net interest margin (NIM) over earning assets fell to 3.46% from 3.77% a year earlier, due to the increase in deposits and borrowing rates, as a result of intense competition in the deposit market.
As at Dec 31, 2011, total gross loans less unearned interest grew 27.1% to 119.3 billion baht from a year earlier, underpinned by corporate and small- and medium-sized enterprise loan expansion.
Deposits and bills of exchange stood at 134.4 billion baht, up 20.7% from 111.4 billion baht a year earlier. Loan-to-deposit ratio [LDR] (including bills of exchange) stood at 88.8%. For bank-only, the LDR stood at 87.2%.
CIMB Thai said its operating expenses rose 10.4% due to increased personnel costs, taxes and duties expenses and other operating costs especially from losses on properties foreclosed, offset by a decrease in premises and equipment expenses and lower commission expenses and consultancy fees.
“However, cost-to-income ratio improved to 68.5% in FY11 compared with 75.8% in FY10 mainly due to the shared gain from TAMC and gain from the sale of unsecured NPL to an affiliate company,” it said.
As at Dec 31, 2011, total capital funds stood at 18.81 billion billion, well above the regulatory requirement, with the Bank of International Settlements ratio of 13%, representing a Tier-1-capital ratio of 7.65%, it said.
For 4QFY11, CIMB Thai’s gross NPL rose to 4.1 billion baht, with an equivalent gross NPL ratio of 3.4% from 2.7% a year earlier. This was due to the deterioration in credit quality of certain sizable accounts and to the impact of the floods on debt collection.
“We have made adequate provision for these accounts and continue to work on rectifying the status,” it said.
This article appeared in The Edge Financial Daily, January 20, 2012.
In a statement to Bursa Malaysia yesterday, CIMB Thai said its total operating income rose 22.2% to 7.77 billion baht from 6.36 billion baht a year earlier, due to higher net interest income, gains on trading and foreign exchange transactions, and other operating income arising from TAMC and the NPL sale. These were offset by lower gains on investments and net fee and service incomes.
On the net interest income side, FY11 recorded an increase of 7.6% or 327.4 million baht, largely underlined by loan expansion.
“On the net fee and service income side, there was a dip of 4.9% or 45.1 million baht due to an increase in collection fee expense in 2011.
“There was an increase of 1.13 billion baht on the non-interest and fee income side, or 101.5%, largely due to the exceptional gain sharing from TAMC and gains from the sale of NPL,” CIMB said in its news release.
CIMB Thai’s net interest margin (NIM) over earning assets fell to 3.46% from 3.77% a year earlier, due to the increase in deposits and borrowing rates, as a result of intense competition in the deposit market.
As at Dec 31, 2011, total gross loans less unearned interest grew 27.1% to 119.3 billion baht from a year earlier, underpinned by corporate and small- and medium-sized enterprise loan expansion.
Deposits and bills of exchange stood at 134.4 billion baht, up 20.7% from 111.4 billion baht a year earlier. Loan-to-deposit ratio [LDR] (including bills of exchange) stood at 88.8%. For bank-only, the LDR stood at 87.2%.
CIMB Thai said its operating expenses rose 10.4% due to increased personnel costs, taxes and duties expenses and other operating costs especially from losses on properties foreclosed, offset by a decrease in premises and equipment expenses and lower commission expenses and consultancy fees.
“However, cost-to-income ratio improved to 68.5% in FY11 compared with 75.8% in FY10 mainly due to the shared gain from TAMC and gain from the sale of unsecured NPL to an affiliate company,” it said.
As at Dec 31, 2011, total capital funds stood at 18.81 billion billion, well above the regulatory requirement, with the Bank of International Settlements ratio of 13%, representing a Tier-1-capital ratio of 7.65%, it said.
For 4QFY11, CIMB Thai’s gross NPL rose to 4.1 billion baht, with an equivalent gross NPL ratio of 3.4% from 2.7% a year earlier. This was due to the deterioration in credit quality of certain sizable accounts and to the impact of the floods on debt collection.
“We have made adequate provision for these accounts and continue to work on rectifying the status,” it said.
This article appeared in The Edge Financial Daily, January 20, 2012.
