CIMB Thai Bank posts 2015 net profit of THB 1,052.5 million, 6.4% growth from last year Loan expansion, fee income growth, and good control of expenses

          Mr. Subhak Siwaraksa, President and Chief Executive Officer of CIMB Thai Bank PCL stated that
for the year ended 31 December 2CIMB Thai Bank PCL15, CIMB Thai group's consolidated operating income rose by THB 1,727.8 million or 16.4% year-on-year ("Y-o-Y") to THB 12.2 billion, derived from a 7.5% growth in net interest income, a 9.6% expansion in net fee and service income and a 79.CIMB Thai Bank PCL% growth in other income. Pre-Provision Operating Profit increased 51.7% Y-o-Y to THB 5,1CIMB Thai Bank PCL6.8 million as operating expenses were well contained, with a slight CIMB Thai Bank PCL.2% reduction. Net profit increased by THB 63.1 million or 6.4% Y-o-Y to THB 1,CIMB Thai Bank PCL52.5 million, mainly attributed to the improved operating income and controlled operating expenses, but partially offset by a 77.CIMB Thai Bank PCL% increase in corporate provisions as well as the bank's conservative reserve policy.
          On a Y-o-Y basis, net interest income increased by THB 588.3 million or 7.5%, resulting from loan expansion (excluding early redemption of hybrid instruments, net interest income increased by THB 678.3 million or 8.7%). Net fee and service income increased by THB 128.8 million or 9.6%, attributed to a higher loan- related fees and mutual funds. Other operating income increased by THB 1,CIMB Thai Bank PCL1CIMB Thai Bank PCL.7 million or 79.CIMB Thai Bank PCL% largely derived from treasury businesses. 
          For the year ended 31 December 2CIMB Thai Bank PCL15, operating expenses decreased by THB 12.7 million or CIMB Thai Bank PCL.2% Y-o-Y due to improved cost containment but was partially offset by higher directors' remuneration, taxes and duties, staff cost, and premises and equipment expenses. The Cost to Income ratio improved to 58.3% in 2CIMB Thai Bank PCL15 compared to 68.CIMB Thai Bank PCL% in 2CIMB Thai Bank PCL14 as a result of better cost management and increased income. 
          Net Interest Margin (NIM) over earning assets stood at 3.27% in 2CIMB Thai Bank PCL15, compared to 3.37% from 2CIMB Thai Bank PCL14, arising from lower yielding assets. 
          As at 31 December 2CIMB Thai Bank PCL15, total gross loans (inclusive of loans guaranteed by other banks and loans to financial institutions) stood at THB 199.CIMB Thai Bank PCL billion, an increase of 4.3% from 31 December 2CIMB Thai Bank PCL14. Deposits (inclusive of Bill of Exchanges, Debentures and selected Structured Deposit Products) stood at THB 218.4 billion, an increase of 3.2% from THB 211.7 billion at the end of December 2CIMB Thai Bank PCL14. The Modified Loan to Deposit Ratio was slightly higher at 91.2% compared to 9CIMB Thai Bank PCL.1% as at 31 December 2CIMB Thai Bank PCL14.
          The gross non-performing loans ("NPL") stood at THB 6.4 billion, with an equivalent gross NPL ratio of 3.1% compared to 3.3% as at 31 December 2CIMB Thai Bank PCL14. The reduction of NPL was mainly due to selling of NPLs in 4Q2CIMB Thai Bank PCL15, more efficient risk management policies, continued resolution of the Bank's NPLs and improvements in loan collection processes.
          CIMB Thai Group's loan loss coverage ratio increased to 1CIMB Thai Bank PCL6.5% as at 31 December 2CIMB Thai Bank PCL15 from 95.2% at the end of December 2CIMB Thai Bank PCL14, following the bank's conservative reserve policy. As at 31 December 2CIMB Thai Bank PCL15, our total provisions stood at THB 6.7 billion showing an excess of THB 2.6 billion over Bank of Thailand's reserve requirements.
          Total consolidated capital funds as at 31 December 2CIMB Thai Bank PCL15 stood at THB 35.5 billion. BIS ratio stood at 15.7%, 11.CIMB Thai Bank PCL% of which comprised Tier-1-capital.