KUALA LUMPUR (July 19): CIMB Thai Bank PCL’s net profit for the second quarter ended June 30, 2024 (2QFY2024) grew 24% to 668.46 million baht (RM86.27 million) from 538.75 million baht in the same period a year earlier, driven by gains on financial instruments, investments, and higher operating income.

Gains on financial instruments climbed fourfold to 290.06 million baht from 71.59 million baht, while gains on investments more than doubled to 175.26 million baht from 34.86 million baht. Total operating income rose by 5.52% to 3.51 billion baht from 3.33 billion baht.

CIMB Thai, which is 94.83%-owned by CIMB Group Holdings Bhd (KL:CIMB), saw its expected credit losses come in lower at 540.42 million baht compared to 547.16 million baht previously.

Looking ahead, CIMB Thai will expedite its strategy to become a "Digital-led Bank with Asean Reach", leveraging the bank’s strengths in Asean digitalisation, wealth management, consumer finance, and sustainability.

"Our key strategy is to create a digital ecosystem that enhances our services in the modern world through the CIMB Thai mobile banking app.

“We have also expanded our service channels through a partnership with TrueMoney, a leading digital financial service provider in Southeast Asia. This collaboration opens a new channel that offers opportunities for customers to invest in the secondary bond market,” said CIMB Thai president and chief executive officer Paul Wong Chee Kin in a statement.

“We carefully select and offer high quality bonds, making them conveniently accessible through the TrueMoney application," he added.

For the six months ended June 30 (6MFY2024), CIMB Thai’s net profit fell by 5.4% to 1.29 billion baht from 1.37 billion baht in the previous year, as operating income slipped 1.7% while operating expenses increased by 7.7%.

The net interest margin over earning assets contracted to 2.2% in 6MFY2024 from 2.7% in 6MFY2023, due to the higher cost of funds.

Gross non-performing loans (NPL) stood at 7.5 billion baht, with a lower gross NPL ratio of 2.9% compared to 3.3% at the end of 2023.

The lower NPL ratio was mainly attributed to the sale of several NPLs in 2024, improved efficiency in risk management policies and asset quality management, as well as loan collection processes.

CIMB Thai’s loan loss coverage ratio was 129.1% at the end of June, compared to 124.2% at the end of December 2023.

At Friday’s noon break, CIMB’s share price was unchanged at RM7.15, giving it a market capitalisation of RM76.5 billion.