CIMB Thai posts RM87.26m net profit for 9-months

KUALA LUMPUR: CIMB Group Holdings Bhd’s subsidiary CIMB Thai posted net profit of 856.1 million baht (RM87.26 million) in the nine-months ended Sept 30, 2011, down 4.2% from 893.6 million baht in the previous corresponding period.

CIMB Thai, a 93.15% of CIMB Bank Bhd, reported on Tuesday, Oct 18 this was mainly due to one-off gains from the disposal of Sathorn building and certain subsidiaries in the corresponding period in 2010.

“Should these items be excluded, the profit would have increased 149.2% year-on-year,” it said.

For the nine-months, CIMB Thai group’s total operating income increased by 127.2 million baht, or 2.6%, from 4.84 billion baht to 4.97 billion baht.

It said the higher operating income was mainly due to higher net interest income and net fee and service income which were offset by both lower gain on investments and other operating income.

“On the net interest income side, there was an increase of 322.8 million baht, or 10.1% for the nine months of 2011, largely underlined by loan expansion.

“On the net fee and service income side, there was increase of 97.9 million bath, or 16.6%, largely attributable to loan related fees and Bancassurance fee,” it said.

However, there was a decrease of 293.6 million baht on non-interest and fee income side, or 28.2%, largely due to the one-off gains from the disposal of the Sathorn building in 1Q10, redemption of the structured deposits and disposal of subsidiaries in the nine months of 2010.

CIMB Thai said if these one-off gains were to be excluded, the non-interest and fee income would have increased by 79.1% year-on-year.