CIMB Thai FY24 profit up 77.7% to 2.85b baht

CIMB Thai, 94.83% owned by CIMB Group Holdings Bhd, achieved a net profit of 2.85 billion baht for the financial year ended December 31, 2024 (FY24), marking a 77.7% year-on-year (y-o-y) growth.

The increase was driven by a 9.7% rise in operating income and a 13.7% decrease in expected credit losses, partially offset by a 2.6% rise in operating expenses.

Operating income increased by 1.33 billion baht, or 9.7%, to 15.10 billion baht, attributed to growth in other operating income, primarily from higher net gains on financial instruments and bad debt recovery.

Net fee and service income grew by 19.9% due to higher fee income from goods and services payments, fund transfers, and collections.

However, net interest income decreased by 3% as interest expenses outpaced interest income growth.

Operating expenses increased by 2.6%, mainly from higher impairment losses on properties for sale. The cost-to-income ratio improved to 58.7%, down from 62.7% in 2023, as operating income growth outpaced operating expense increases.

As of December 31, 2024, CIMB Thai’s total gross loans increased by 2.6%, while deposits rose by 4.4%. The bank’s gross non-performing loans (NPL) ratio improved to 2.6%, down from 3.3% in 2023, attributed to the sale of NPLs and improved risk management.

The loan loss coverage ratio also improved to 137.9%, reflecting stronger asset quality management.

CIMB Thai’s total capital funds stood at 59.8 billion baht as of December 31, 2024. — TMR