Mr. Wut Thanittiraporn, President and Chief Executive Officer, CIMB Thai Bank PCL (CIMB THAI) commented on the unreviewed consolidated financial results for the nine months ended 30 September 2025, CIMB THAI Group's consolidated operating income decreased by THB 236.1 million or 2.2% year-on-year ("YoY") to THB 10,549.4 million from 9M2024. The lower operating income was mainly due to the 15.1% decline in net interest income and a 0.5% decrease in net fee and service income, offset with a 34.0% growth in other income. Pre-provision operating profit increased by 24.6% YoY to THB 5,248.4 million, driven by a 19.4% decrease in operating expenses, partially offset by a 2.2% decline in operating income. Net profit, however, declined 3.2% YoY to THB 1,830.4 million, mainly due to a 59.5% increase in expected credit loss (ECL). The rise in ECL reflects a prudent approach in response to prevailing economic conditions.
On a YoY basis, net interest income decreased THB 1,094.0 million or 15.1%, due to lower interest income on loans. Net fee and service income contracted THB 5.1 million or 0.5%, primarily from insurance brokerage income. These were partially offset by a THB 863.0 million or 34% increase from other income, driven by higher net investment gains.
Operating expenses decreased by THB 1,273.5 million or 19.4%, mainly from lower impairment loss on properties for sale and reduced specific business tax arising from lower interest income, partially offset by higher personnel costs. This, consequently, improved the cost to income ratio to 50.2% in 9M2025 compared to 61.0% in 9M2024.
Net interest margin (NIM) over earning assets stood at 1.9% in 9M2025, compared to 2.3% in 9M2024, arising from lower interest income on loans.
As at 30 September 2025, total gross loans (inclusive of loans guaranteed by other banks and loans to financial institutions) stood at THB 242.1 billion, a decrease of 3.7% from 31 December 2024. Deposits (inclusive of bills of exchange, debentures and selected structured deposit products) stood at THB 318.5 billion, a decrease of 1.7% from THB 324.0 billion as at end of December 2024. The modified loan to deposit ratio was slightly lower at 76.0% compared to 77.6% as at 31 December 2024.
Gross non-performing loans (NPL) stood at THB 6.3 billion, with a flat gross NPL ratio of 2.6% compared to the end of December 2024. The gross NPL ratio is reflective of CIMB THAI Group's stringent credit risk underwriting, efficient risk management policies, improvement in loan collection processes and the continued management of the Bank's NPLs.
CIMB THAI Group's loan loss coverage ratio as at 30 September 2025 stood at 158.1% from 149.0% at the end of December 2024. Total allowance for expected credit losses stood at THB 9.8 billion, THB 1.5 billion over the Bank of Thailand's reserve requirements.
Total consolidated capital funds as at 30 September 2025 stood at THB 61.4 billion. The BIS ratio stood at 21.1%, of which 16.6% comprised Tier-1-capital.