CIMB Thai Bank posts RM54m net profit in 1H

KUALA LUMPUR: CIMB Thai Bank Public Company Ltd posted net profit of 536.4 million baht (RM54 million) in the first half ended June 30, 2011.

It said on Tuesday, July 19 total operating income was 3.2 billion baht, underpinned by net interest income and fee and service income.

CIMB Thai Bank president and chief executive officer Subhak Siwaraksa said the group operating results for 1H showed a 24.9% decline in net profit to 536.4 million baht, from 714.0 million a year ago.

However, he explained in 2010, there was special revenue recognised including gains from disposal of Sathorn building in 1Q2010 and CIMB-Principal Asset Management in 2Q10.

“Should we exclude these items, profit should increase 160%,” he said.

On a year-on-year basis, for 1H11, consolidated CIMB Thai group total operating income slipped by 115.3 million baht, or 3.5%, from 3.3 billion baht to 3.2 billion baht. The lower operating income was mainly due to lower total other operating income offset by both higher net interest income and net fee and service income.

On the net interest income side, 1H11 recorded an increase of 145.0 million baht, or 6.8%, largely underlined by loan expansion.

As for the net fee and service income side, there was a 48.4% increase or 164.4 million baht, mainlymdue to loan related fees.

However, the total other operating income recorded a decrease of 424.7 million baht or 50.1%, largely due to the one-off gains from the disposal of the Sathorn building in 1Q10, redemption of the structured deposits and sale of one subsidiary-namely, CIMB-Principal Asset Management in 2Q10.

“Should we exclude this one-off gains, our other operating income would have increased by 59.1%,” he said.

CIMB Thai is a 93.15% subsidiary of CIMB Bank Bhd.