KUALA LUMPUR (Oct 21): CIMB Thai Bank PCL posted a net profit of 1.83 billion baht (approximately RM236.45 million) for the nine months ended Sept 30, 2025 (9MFY2025), down 3.2% year-on-year (y-o-y) from 1.89 billion baht (RM244.19 million), mainly due to higher expected credit losses (ECL).

The Thai arm of CIMB Group Holdings Bhd (KL:CIMB) said that ECL rose 59.5% to 2.96 billion baht in 9MFY2025 from 1.86 billion baht in the previous year, as the bank responded to prevailing economic conditions.

CIMB Thai’s consolidated operating income slipped 2.2% y-o-y to 10.55 billion baht, mainly due to a 15.1% drop in net interest income to 6.15 billion baht, as lower loan-related income offset stronger investment gains. Net fee and service income also fell marginally by 0.5% to 993.3 million baht.

However, the bank’s pre-provision operating profit improved 24.6% to 5.25 billion baht, supported by a 19.4% decline in operating expenses to 5.3 billion baht, mainly due to lower impairment loss on properties for sale and reduced specific business tax.

Net interest margin (NIM) over earning assets narrowed to 1.9% from 2.3%, as interest income on loans moderated amid a high-cost funding environment.

Total gross loans stood at 242.1 billion baht as at end-September, down 3.7% from Dec 31, 2024, while deposits slipped 1.7% to 318.5 billion baht. The modified loan-to-deposit ratio was slightly lower at 76%, versus 77.6% at end-2024.

Gross non-performing loans (NPLs) were stable at 6.3 billion baht, maintaining a gross NPL ratio of 2.6%. The loan loss coverage ratio strengthened to 158.1% from 149% previously.

Total allowance for ECL stood at 9.8 billion baht, or 1.5 billion baht above the Bank of Thailand’s reserve requirements.

On Bursa Malaysia, CIMB shares closed up one sen or 0.14% at RM7.35 on Tuesday, giving the group a market capitalisation of RM79.16 billion.