CIMBT’s 1Q21 Profit Falls 68% to ฿341Mn from Higher ECL and Lower Income

CIMB Thai Bank Public Company Limited (CIMBT) has announced its 1Q21 consolidated financial statement through the Stock Exchange of Thailand as follows;

CIMBT reported a net profit of 341 million baht in 1Q21, decreased 68.39% from a net profit of 1,079 million baht in 1Q20, mainly due to an increase of 64.3% in expected credit losses, reflected by the elevated provisions from economic uncertainty and potential credit migration from customers affected by the Covid-19 pandemic.

 

The bank’s operating income dropped by 731.4 million baht or 17.2% YoY to 3,510.5 million baht, mainly due to a decline in other income by 37.2% and a net interest income by 12.9%. However, net fee and service income grew 3.1%.

 

Operating expenses decreased by 15.5% due to better cost management and lower personnel cost. The cost to income ratio increased to 59.3% in 1Q21, compared to 58% in 1Q20 as a result of the lower operating income.

 

The gross non-performing loans (NPL) stood at 10.6 billion baht, translating to an impaired loan ratio of 4.8% compared to 4.6% as at December 31, 2020. CIMBT’s loan loss coverage ratio stood at 98.9% as at March 31, 2021 from 93.3% at the end of December 2020. As of the end of 1Q21, total allowance for expected credit losses stood at 9.6 billion baht, which was 1.9 billion baht over the Bank of Thailand’s reserve requirements.