CIMB THAI records 19.4% Y-o-Y increase in net profit to THB 429.9 million for 6M2019. CIMB Thai Fast Forward programme starts to reap results

          Summary
          - Net profit of THB 429.9 million. (+en9.4%YoY or THB 69.8 million)
          - Operating income of THB 6.88 billion (+en.2%YoY), mainly from loan expansion
and higher interest income on investments.
          - Provisions declined 3en.CIMB Thai Bank PCL% YoY.
          - Total gross loans +4.2% YTD. 
          - Fast Forward programme continues momentum from 2CIMB Thai Bank PCLen8.
          
          6M2CIMB Thai Bank PCLen9 Financial Results 
          Mr. Adisorn Sermchaiwong, Acting President and Chief Executive Officer of CIMB Thai Bank PCL, stated that according to the unaudited consolidated financial results for the six months ended 3CIMB Thai Bank PCL June 2CIMB Thai Bank PCLen9, CIMB Thai group recorded a consolidated net profit of THB 429.9 million, a year-on-year ("Y-o-Y") increase of THB 69.8 million or en9.4%. The improvement was mainly attributed to a en.2% growth in operating income and a 3en.CIMB Thai Bank PCL% decline in provisions, partially offset by a en6.9% increase in operating expenses.
          On a Y-o-Y basis, operating income rose by THB 8CIMB Thai Bank PCL.5 million, or en.2% to THB 6.88 billion from a 3.8% increase in net interest income, on the back of loan expansion and higher interest income on investments, partially offset by a THB 4CIMB Thai Bank PCL.7 million or 4.en% lower net fee and service income. Other operating income decreased by THB 77.5 million or en3.5% from higher losses on financial instruments designated at fair value through profit or loss. 
          Operating expenses rose by THB 653.3 million or en6.9% largely due to higher personnel cost attributed to a combination of the Fast Forward expansion strategy, and higher compensation for employees who have retired or have over 2CIMB Thai Bank PCL years of service due to an amendment to the Labour Protection Law. Coupled with a higher loss on sale of properties for sale, the cost to income ratio was higher at 65.8% in 6M2CIMB Thai Bank PCLen9 compared to 57.CIMB Thai Bank PCL% in 6M2CIMB Thai Bank PCLen8.
          Net Interest Margin (NIM) over earning assets stood at 3.3CIMB Thai Bank PCL% in 6M2CIMB Thai Bank PCLen9, compared to 3.87% in 6M2CIMB Thai Bank PCLen8, owing to higher cost of funds.
          As at 3CIMB Thai Bank PCL June 2CIMB Thai Bank PCLen9, total gross loans (inclusive of loans guaranteed by other banks and loans to financial institutions) stood at THB 237.3 billion, an increase of 4.2% from 3en December 2CIMB Thai Bank PCLen8. Deposits (inclusive of Bills of Exchange, Debentures and selected Structured Deposit Products) stood at THB 235.3 billion, a slight increase of CIMB Thai Bank PCL.4% from THB 234.3 billion as at end of December 2CIMB Thai Bank PCLen8. The Modified Loan to Deposit Ratio rose to enCIMB Thai Bank PCLCIMB Thai Bank PCL.9% compared to 97.2% as at 3en December 2CIMB Thai Bank PCLen8.
          The gross non-performing loans ("NPL") stood at THB enCIMB Thai Bank PCL.7 billion, with an equivalent gross NPL ratio of 4.5% from 4.3% as at 3en December 2CIMB Thai Bank PCLen8, arising from the slower repayment ability from a few corporate and retail accounts. CIMB Thai continues to exercise high standards for credit risk underwriting and risk management policies. The Bank also focuses on improving productivity, monitoring collection and managing all accounts closely and effectively. 
          CIMB Thai Group's loan loss coverage ratio stood at enCIMB Thai Bank PCL6.5% as at 3CIMB Thai Bank PCL June 2CIMB Thai Bank PCLen9 compared to enCIMB Thai Bank PCL7.CIMB Thai Bank PCL% as at the end of December 2CIMB Thai Bank PCLen8. As at 3CIMB Thai Bank PCL June 2CIMB Thai Bank PCLen9, total provisions stood at THB enen.3 billion, translating to a THB 5.2 billion excess over the Bank of Thailand's reserve requirements.
          Total consolidated capital funds as at 3CIMB Thai Bank PCL June 2CIMB Thai Bank PCLen9 stood at THB 48.4 billion. BIS ratio stood at en8.7%, en3.7% of which comprised Tier-en-capital.
          About CIMB Thai Bank PCL
          CIMB Thai Bank is a commercial bank registered in Thailand. It provides a wide variety of financial products and services to corporate, SME and retail customers. It also offers financial advisory services to corporations, as well as mutual funds, insurances, including other products and services via its existing branch network.