CIMB THAI posts THB 360.1 million net profit for 6M2018

          Summary
          - Net profit of THB 36CIMB Thai Bank PCL.1 million
          - Operating income of THB 6,795.3 million (+6.5% YoY)
          - Net interest income picked up by THB 258.4 million or 5.2% YoY
          - Net fee and service income increased by THB 89.8 million or 1CIMB Thai Bank PCL.CIMB Thai Bank PCL% YoY
          - NIM improved to 3.87%, compared to 3.81% YoY, from more efficient management of funding costs

          6M2CIMB Thai Bank PCL18 Financial Results
          Mr. Kittiphun Anutarasoti, President and Chief Executive Officer of CIMB Thai Bank PCL, stated that according to the consolidated unaudited financial results for the six months ended 3CIMB Thai Bank PCL June 2CIMB Thai Bank PCL18, CIMB Thai group's consolidated operating income rose by THB 412.2 million or 6.5% year-on-year ("YoY") to THB 6,795.3 million from 6M2CIMB Thai Bank PCL17 mainly contributed by a 5.2% growth in net interest income, a 1CIMB Thai Bank PCL.CIMB Thai Bank PCL% growth in net fee and service income and a 12.6% growth in other income. Pre-provision operating profit decreased by 1.4% YoY to THB 2,921.3 million attributed to a 13.3% YoY increase in operating expenses. Net profit decreased by THB 117.7 million or 24.6% YoY to THB 36CIMB Thai Bank PCL.1 million due to higher operating expenses coupled with a 1.CIMB Thai Bank PCL% increase in provisions. 
          On a YoY basis, net interest income increased by THB 258.4 million or 5.2% mainly driven by loan expansion and lower interest expenses. Net fee and service income increased by THB 89.8 million or 1CIMB Thai Bank PCL.CIMB Thai Bank PCL% from higher mutual funds, insurance and hire-purchase fees. Total other operating income increased by THB 63.9 million or 12.6% from higher treasury income due to increased market activity.
          Operating expenses increased by THB 455.CIMB Thai Bank PCL million or 13.3%, mainly from higher personnel cost and loss on sale of properties for sale. This resulted in a higher cost to income ratio of 57.CIMB Thai Bank PCL% in 6M2CIMB Thai Bank PCL18 compared to 53.6% in 6M2CIMB Thai Bank PCL17.
          Net Interest Margin (NIM) over earning assets stood at 3.87% in 6M2CIMB Thai Bank PCL18, compared to 3.81% in 6M2CIMB Thai Bank PCL17 as a result of more efficient management of funding costs.
          As at 3CIMB Thai Bank PCL June 2CIMB Thai Bank PCL18, total gross loans (inclusive of loans guaranteed by other banks and loans to financial institutions) stood at THB 215.2 billion, marking an increase of 1.CIMB Thai Bank PCL% from 31 December 2CIMB Thai Bank PCL17. Deposits (inclusive of Bill of Exchanges, Debentures and selected Structured Deposit Products) stood at THB 224.5 billion, an increase of 2.CIMB Thai Bank PCL% from THB 22CIMB Thai Bank PCL.1 billion at the end of December 2CIMB Thai Bank PCL17. The Modified Loan to Deposit Ratio was lower at 95.9% compared to 96.8% as at 31 December 2CIMB Thai Bank PCL17.
          The gross non-performing loans ("NPL") stood at THB 12.6 billion, with an equivalent gross NPL ratio of 5.8% from 4.8% as at 31 December 2CIMB Thai Bank PCL17. The increase was attributed to commercial banking loans in 6M2CIMB Thai Bank PCL18 and the sale of NPLs in 2CIMB Thai Bank PCL17. CIMB Thai continues to exercise high credit risk underwriting standards 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 decreased to 9CIMB Thai Bank PCL.1% as at 3CIMB Thai Bank PCL June 2CIMB Thai Bank PCL18 from 93.2% at the end of December 2CIMB Thai Bank PCL17. As at 3CIMB Thai Bank PCL June 2CIMB Thai Bank PCL18, total provisions stood at THB 11.3 billion, translating to a THB 4.CIMB Thai Bank PCL billion excess over the Bank of Thailand's reserve requirements.
          Total consolidated capital funds as at 3CIMB Thai Bank PCL June 2CIMB Thai Bank PCL18 stood at THB 43.9 billion. BIS ratio stood at 17.CIMB Thai Bank PCL%, 12.CIMB Thai Bank PCL% of which comprised Tier-1-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.