KUALA LUMPUR – CIMB Thai Bank Public Company Ltd (CIMB Thai) recorded a lower net profit of 1.29 billion baht (RM173.6 million) for the year ended December 31, 2020 (FY20) from 2.01 billion baht in the same period a year earlier.
In a filing with Bursa Malaysia, CIMB Thai said the bank’s net profit decreased 727.2 million baht in FY20.
The bank attributed the lower net profit to an increase in provisions due to economic uncertainty and potential credit migration from customers affected by the Covid-19 pandemic.
“This amount takes into account the forward-looking expected credit loss models and management overlay within a deteriorating economic environment under the Thai Financial Reporting Standards, or TFRS 9, framework.”
On a year-on-year basis, operating income rose to 14.92 billion baht in FY20 from 14.75 billion baht previously, driven by an increase of 1.65 billion baht, or 153.6%, in other operating income.
“This was mainly due to an increase in gains on financial instruments measured at fair value through profit or loss of 1.11 billion baht.
“However, these were partially offset by a drop in net fee and service income of 39.9%, or 834.4 million baht, due to lower fees from goods and services payments, and insurance brokerage income.”
For FY20, the bank’s operating expenses decreased by 478.6 million baht largely due to lower personnel cost and better cost management, improving the cost-to-income ratio to 59.6% last year from 63.5% in 2019. – Bernama, January 21, 2021
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