CIMB Thai Bank Public Company Limited (SET: CIMBT) has kicked off the first quarter of 2026 with a resilient financial performance, posting a consolidated net profit of THB 908.2 million. This represents an 8.4% year-on-year (YoY) increase compared to the same period in 2025.
While the bank faced a challenging environment for top-line growth, the bottom line was bolstered by significant improvements in credit cost management and disciplined spending.
The group’s total operating income saw a 3.1% YoY decline, falling to THB 3,473.3 million. This contraction was primarily driven by a 7.1% drop in net interest income (NII), which was weighed down by lower asset yields resulting from the prevailing low-interest-rate environment.
Net Interest Margin (NIM) compressed to 1.96%, down from 2.04% in the previous year. Fee and service income also took a hit, plunging 22.7% due to reduced insurance brokerage and underwriting fees. These losses were partially mitigated by a 12.6% surge in other operating income, fueled by strong gains on investments.
The standout driver for the quarter’s profit growth was a sharp 21.1% reduction in expected credit losses (ECL). Asset quality remained stable, with the gross non-performing loan (NPL) ratio improving to 2.1%, down from 2.2% at the end of 2025. Furthermore, the bank strengthened its safety net, increasing its loan loss coverage ratio to 178.0%.
On the balance sheet side, total gross loans grew by 1.6% from year-end 2025 to THB 236.6 billion. However, deposits decreased by 4.8%, leading to a higher modified loan-to-deposit ratio of 82.5%. CIMB Thai remains well-capitalized to navigate future volatility, maintaining a robust BIS ratio of 19.6%, with Tier-1 capital accounting for 15.2%.
