CIMB Thai Q2 Profit Surges Fivefold on Income Growth and Lower Credit Losses

CIMB Thai Bank PCL, a majority-owned subsidiary of CIMB Group Holdings Bhd, reported a more than fivefold surge in net profit for the second quarter of FY2026, reaching 886.3 million Thai baht, up from 174.5 million baht a year earlier. The strong performance was driven by a 76.3% drop in expected credit losses to 104.9 million baht and a 21.1% rise in operating income to 2.63 billion baht. Net interest income climbed 35.2% to 1.37 billion baht, while net fee and service income grew 16.7% to 352.3 million baht. Operating expenses also eased 4.5%, reflecting improved cost discipline alongside stronger revenue generation. For the six months ended June 30, 2026, CIMB Thai’s net profit rose 47% to 1.49 billion baht, compared with 1.01 billion baht previously. CEO Wut Thanittiraporn attributed this to higher operating income, tighter cost control, and reduced loan-loss provisions. Operating income increased 9.8%, while expenses fell slightly and expected credit losses dropped 30.4% year-on-year. The net interest margin improved marginally to 2%, from 1.9%, as lower funding costs offset weaker asset yields, underscoring the bank’s ability to sustain profitability despite a challenging rate environment. CIMB Thai’s balance sheet remained healthy as at end-June 2026. Total gross loans rose 4.1% to 242.2 billion baht, while deposits increased 2.6% to 309.2 billion baht. Asset quality improved, with the gross NPL ratio easing to 2.1% from 2.2%, and the loan loss coverage ratio strengthening to 179.3%. Total allowances for expected credit losses stood at 8.9 billion baht, exceeding regulatory requirements by 1.5 billion baht. The bank’s capital position remained robust, with total capital funds of 59.4 billion baht and a BIS ratio of 19.7%, including 15.4% Tier 1 capital—reflecting strong resilience and a solid buffer against potential risks.