CIMB Thai net profit increased 6.4% last year
CIMB Thai Bank has reported 2015 net profit of Bt1.05 billion, up 6.4 per cent from the previous year.
Subhak Siwaraksa, president and chief executive officer, said CIMB Thai group’s consolidated operating income rose by Bt1.72 billion or 16.4 per cent year on year to Bt12.2 billion, derived from 7.5-per-cent growth in net interest income, 9.6-per-cent expansion in net fee and service income, and 79.0-per-cent growth in other income.
Pre-provision operating profit increased 51.7 per cent year on year to Bt5.1 billion as operating expenses were well contained, with a slight 0.2-per-cent reduction.
Net profit increased by Bt63.1 million or 6.4 per cent year on year to Bt1.05 billion, mainly attributed to the improved operating income and controlled operating expenses, but partially offset by a 77-per-cent increase in corporate provisions as well as the bank’s conservative reserve policy.
On a year-on-year basis, net interest income increased by Bt588.3 million or 7.5 per cent, resulting from loan expansion (excluding early redemption of hybrid instruments, net interest income increased by Bt678.3 million or 8.7 per cent).
Net fee and service income increased by Bt128.8 million or 9.6 per cent, attributed to higher loan-related fees and mutual funds.
Other operating income increased by Bt1.01 billion or 79.0 per cent, largely derived from treasury businesses.
Operating expenses decreased by Bt12.7 million or 0.2 per cent year on year thanks to improved cost containment, but this was partially offset by higher directors’ remuneration, taxes and duties, staff costs, and premises and equipment expenses.
The cost-to-income ratio improved to 58.3 per cent in 2015 compared with 68.0 per cent in 2014 as a result of better cost management and increased income.
Net interest margin over earning assets stood at 3.27 per cent in 2015, compared with 3.37 per cent in 2014, arising from lower-yielding assets.
