CIMB Thai posts $27M net profit in 2010

CIMB Thai Bank PCL has disclosed the unaudited operating results for the year ended 31 December 2010 showed a consolidated net profit of US$27.26 million.

This is a notable improvement of US$27.19 from a net profit of US$65,773 in 2009, the figure was released by Mr. Subhak Siwaraksa, President and CEO.

On a year-on-year basis, the consolidated CIMB Thai total income increased by US$17.19 million, or 8 percent, from THB 6.3 billion US$207 million to THB 6.8 billion 223.6 million. The higher income was attributed to both the improvement in net interest income and non-interest income.

On the net interest income side, the improvement of US$7 million, or 5 percent, was observed in 2010, largely underlined by loan expansion as well as lower interest expenses in the current year. In addition, loan loss provisioning was lowered by US$12.09 million, or 31 per cent.

Net Interest Margin over earning assets improved to 4.1 percent from 3.3 percent, supported by rightsizing the deposit book and improved management of deposit costs.

"2010 results mark CIMB Thai's continued growth momentum and reflect our underlined strengths, both from the on-going business transformation and greater synergy with our parent, the CIMB Group. Our strategic undertaking of diversifying our loan portfolio as well as our revenue base, while remaining very effective in managing the cost of funds, has propelled CIMB Thai to double digit growth in loans and deposits, and record high financial results. As for the asset quality, CIMB Thai's prudent risk management practices coupled with our strategic intent and undertaking to separate the good bank from the bad bank have enabled us to close 2010 with an NPL ratio of 3.1 percent – a marked progress from 14.9 percent at the end of 2009." Mr. Subhak said.