Bangkok--19 Apr--CIMB Thai Bank
CIMB Thai Bank Plc. and its subsidiaries today announced unreviewed operating results for 1Q2011 which showed total operating income of THB 1.5 billion with the net profit of THB 282 million. Double digit growth rates were observed in both net interest income and fee and service income. Asset quality remained strong with an NPL ratio of 2.7%.
Mr. Subhak Siwaraksa President and Chief Executive Officer CIMB Thai Bank PCL stated “The first quarter results were quite satisfactory. Loan and revenue growth were robust and yet broad-based. Asset quality remained very strong. We are optimistic and expect the first quarter momentum will be carried through for the remaining three quarters of 2011.”
On a year-on-year basis, the consolidated CIMB Thai total operating income decreased by THB 106 million, or 6%, from THB 1.6 billion to THB 1.5 billion. For 1Q11, net interest income and net fee and service income improved but offset by lower other operating income. On the net interest income side, 1Q11 recorded an improvement of THB 95 million, or 9%, largely underlined by loan expansion. On the net fee and service income side, there was an notable increase of THB 29 million, or 24%, was largely attributed to loan related and Bank assurance fees. Meanwhile, there was a decrease of THB 281 million on the other operating income side, or 69%, largely due to the one-off gains from the disposal of the Sathorn building in the first quarter of last year. Should we exclude this one-off gains, our other operating income would have increased by 13%
Net Interest Margin (NIM) over earning assets stood at 3.8% for both 1Q11 and 1Q10
As of 31 March, 2011, total gross loans less unearned interest stood at THB 97.2 billion, up 4% compared to end of December 2010. The loan growth was largely underlined by SME and retail portfolio expansion. Deposits and Bill of Exchanges, meanwhile, stood at THB 106 billion, down 5% from THB 111 billion at the end of December 2010, highlighting our deliberate effort to effectively manage our deposit book. Given the aforementioned development in loans and deposits, the Loan to Deposit Ratio (including Bill of Exchanges) stood at 92%. For bank-only, the Loan to Deposit Ratio (including Bill of Exchanges) stood at 91%.
Ongoing efforts to improve asset quality and operating efficiency together with, the sales of STAMC and disposal of NPL portfolios to STAMC in 4Q10,reduced CIMB Thai’s consolidated gross non-performing loans ("NPL") to THB 2.6 billion - equivalent to an NPL ratio of 2.7% — a marked progress from 1Q10 of 10.2%.
CIMB Thai’s annualized loan loss charge for 1Q11 was only 0.3% compared to 0.8% in the same corresponding period last year, reflecting the Bank’s vigilant credit discipline and improved asset quality in the current period. Loan loss coverage ratio improved to 97.1% as of end March 2011 from 91.4% as of end December 2010, exhibiting our prudent policy of building up a stronger cushion to mitigate against an income volatility given unfavorable external developments.
On a year-on-year basis, operating expenses were higher in 1Q11 by THB 34 million, or 3%, mainly due to increased personnel costs, marketing expenses and collection fees, while premises and equipment expenses decreased. The cost to income ratio decreased to 75% in 1Q11 compared to 68% in 1Q10 mainly due to one-off gain of Sathorn building aforementioned. Without such one-off gain, the cost to income ratio would have improved from 83% in 1Q10 to 75% in 1Q11.
Total capital funds for the Bank as of March 31, 2011 stood at THB 16.7 billion, well-above regulatory requirement, with the BIS ratio of 13.96%, representing Tier-1-capital of 8.45%.
For more information please contact:
Jittima Chawalitnimitkoon
Media relations
CIMB Thai Bank PLC
Tel: +66 2638 8000 ต่อ 8249
Fax : +66 2657 3084
email:
[email protected]