CIMB Thai Bank posts 1H2016 net profit of THB 367.2 million, 5.5% growth from last year due to net interest income growth and good control of expenses

          Mr. Subhak Siwaraksa, President and Chief Executive Officer of CIMB Thai Bank PCL stated that
according to the unaudited financial results for the six months ended 3CIMB Thai Bank PCL June 2CIMB Thai Bank PCL16, CIMB Thai
group's consolidated operating income rose by THB 4CIMB Thai Bank PCL9.5 million or 6.7% year-on-year ("YoY") to
THB 6,487.9 million compared to 6M2CIMB Thai Bank PCL15, underpinned by a 23.2% growth in net interest income
and offset by a 3.CIMB Thai Bank PCL% and 35.8% reduction in net fee and service income and other income
respectively. Pre-Provision Operating Profit increased 15.5% YoY to THB 2,998.2 million due to
better cost controls as operating expenses only rose CIMB Thai Bank PCL.2% YoY. Net profit increased by THB 19.1
million or 5.5% YoY to THB 367.2 million, on the back of the improved operating income and better
cost management, partially offset by a 17.CIMB Thai Bank PCL% YoY increase in provisions in line with the slower
economic recovery. 
          On a YoY basis, net interest income increased by THB 918.5 million or 23.2%, mainly from loan expansion and lower interest expenses while net fee and service income decreased by THB 22.9 million or 3.CIMB Thai Bank PCL%, due to lower loan syndication and loan related fees. Other operating income decreased by THB 486.1 million or 35.8% due to softer treasury businesses, partially moderated by higher gains on investment and other operating income.
          Operating expenses grew slightly by THB 6.6 million or CIMB Thai Bank PCL.2% due to higher employee expenses, partially offset by a decrease in premises and equipment expenses and taxes and duties. As a result of better cost management and increased income, the cost to income ratio decreased to 53.8% in 6M2CIMB Thai Bank PCL16 compared to 57.3% in 6M2CIMB Thai Bank PCL15.
          Net Interest Margin (NIM) over earning assets stood at 3.79% in 6M2CIMB Thai Bank PCL16, compared to 3.CIMB Thai Bank PCL5% in 6M2CIMB Thai Bank PCL15 as a result of more efficient funding cost management.
          As at 3CIMB Thai Bank PCL June 2CIMB Thai Bank PCL16, total gross loans (inclusive of loans guaranteed by other banks and loans to financial institutions) stood at THB 2CIMB Thai Bank PCL2.5 billion, marking an increase of 1.8% from 31 December 2CIMB Thai Bank PCL15. Deposits (inclusive of Bill of Exchanges, Debentures and selected Structured Deposit Products) stood at THB 214.8 billion, decrease of 1.7% from THB 218.4 billion at the end of December 2CIMB Thai Bank PCL15. The Modified Loan to Deposit Ratio was higher at 94.3% compare to 91.1% as at 31 December 2CIMB Thai Bank PCL15.
          The gross non-performing loans ("NPL") stood at THB 8.8 billion, with an equivalent gross NPL ratio of 4.3%. This is an increase from 3.1% as at 31 December 2CIMB Thai Bank PCL15 mainly arising from the slower repayment ability from a few corporate and SME accounts given the softer economic environment. 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 92.8% as at 3CIMB Thai Bank PCL June 2CIMB Thai Bank PCL16 from 1CIMB Thai Bank PCL6.5% at the end of December 2CIMB Thai Bank PCL15. As at 3CIMB Thai Bank PCL June 2CIMB Thai Bank PCL16, our total provisions stood at THB 8.1 billion showing an excess of THB 3.2 billion over Bank of Thailand's reserve requirements.
          Total consolidated capital funds as at 3CIMB Thai Bank PCL June 2CIMB Thai Bank PCL16 stood at THB 35.1 billion. BIS ratio stood at 15.1%, 1CIMB Thai Bank PCL.9% of which comprised Tier-1-capital.