What To Know
- CIMB Thai Bank has reported a softer financial performance for 2025 as pressure from lower lending activity, narrowing margins, and higher credit provisioning weighed on earnings, even as the bank succeeded in tightening cost controls and strengthening asset quality.
- 4 percent due to a contraction in loan volumes and a reduction in the net interest margin.
Bangkok Business News: CIMB Thai Bank has reported a softer financial performance for 2025 as pressure from lower lending activity, narrowing margins, and higher credit provisioning weighed on earnings, even as the bank succeeded in tightening cost controls and strengthening asset quality. The bank posted a net profit of 2,257.3 million baht for the year ended December 31, 2025, marking a decline of 594.8 million baht or 20.9 percent compared with the previous year.
According to Mr Wut Thanittiraporn, President and Chief Executive Officer of CIMB Thai Bank, pre-tax profit fell to 2,830.4 million baht, down 20.5 percent year on year. The decline reflected an 8.8 percent drop in operating income alongside a sharp 34.3 percent rise in expected credit losses, partially offset by a notable reduction in operating expenses. The management noted that challenging economic conditions and cautious borrowing sentiment continued to shape the operating environment, with this Bangkok Business News report highlighting how banks are balancing prudence with profitability in a changing financial landscape.
CIMB Thai Bank reports lower 2025 profit as margins tighten but asset quality improves
Image Credit: CIMB Thai Bank
Operating Income Under Pressure
Operating income for 2025 stood at 13,771.5 million baht, a decrease of 1,331.0 million baht from the previous year. The most significant drag came from net interest income, which declined by 12.4 percent due to a contraction in loan volumes and a reduction in the net interest margin. Net fee and service income also weakened, slipping 7.4 percent, mainly from lower fees related to insurance product sales. Other operating income edged down slightly as gains from financial instruments and bad debt recoveries softened, despite stronger investment related gains.
Cost Control and Efficiency Gains
In contrast to revenue pressures, CIMB Thai Bank delivered a strong performance on cost management. Operating expenses declined by 17.2 percent or 1,522.6 million baht year on year. This improvement was driven by lower impairment allowances for assets held for sale, reduced employee related expenses, and a drop in specific business tax in line with lower interest income. As a result, the operating expense to income ratio improved to 53.3 percent in 2025 from 58.7 percent in 2024, reflecting enhanced operational efficiency.
Loans Deposits and Asset Quality
The net interest margin narrowed to 1.9 percent from 2.2 percent a year earlier, reflecting lower yields on earning assets. As of the end of 2025, net loans stood at 232.8 billion baht, down 7.6 percent, while deposits declined 6.9 percent to 301.5 billion baht. The modified loan to deposit ratio eased slightly to 77.2 percent.
Asset quality showed clear improvement. Non-performing loans declined to 5.2 billion baht, with the NPL ratio falling to 2.2 percent from 2.6 percent. This improvement was supported by NPL sales, disciplined risk management, and more effective debt collection. Coverage also strengthened, with expected credit loss allowances reaching 171.5 percent of NPLs.
The bank closed the year with total capital of 60.8 billion baht and a solid total capital ratio of 21.3 percent, underscoring its resilience despite earnings headwinds. While profitability softened in 2025, CIMB Thai Bank’s stronger balance sheet, improved asset quality, and disciplined cost structure position it to navigate ongoing economic uncertainty with greater stability and confidence over the coming periods.
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