On a YoY basis, operating income declined by THB 38.1 million, or 0.4% to THB 10,709.4 million. The decrease of THB 485.8 million or 6.4% in net interest income was due to the lower interest income from hire purchase business and loans. This was partially offset by a THB 172.6 million or 17.7% increase in net fee and service income, driven by higher fee income from insurance and mutual fund brokerage. Other operating income increased by THB 275.2 million or 12.5% from an increase in gains on financial instruments measured at fair value and other income, which was offset by the increase of losses on investments.
The operating expenses decreased by THB 231.8 million or 3.9%, largely due to better cost management. This consequently improved the cost to income ratio to 53.2 % in 9M2022 from 55.2% in 9M2021.
Net Interest Margin (NIM) over earning assets stood at 2.7% in 9M2022, compared to 3.1% in 9M2021, as a result of lower interest income on hire purchase business and loans.
As at 30 September 2022, total gross loans (inclusive of loans guaranteed by other banks and loans to financial institutions) stood at THB 224.1 billion, an increase of 5.8% from 31 December 2021. Deposits (inclusive of bills of exchanges, debentures and selected structured deposit products) stood at THB 279.4 billion, an increase of 16.7% from THB 239.5 billion as at end of December 2021. The modified loan to deposit ratio decreased to 80.2% from 88.5% as at 31 December 2021.
The gross non-performing loans (NPL) ratio stood at THB 7.8 billion, a marginal decrease of 3.4%, compared to 3.7% as at 31 December 2021. This was mainly due to the sale of some NPLs in 2022, as part of efficient risk management policies, which improved asset quality management and loan collection processes.
CIMB Thai Group's loan loss coverage ratio stood at 113.6% as at 30 September 2022, compared to 117.5% at the end of December 2021. The total allowance for expected credit losses stood at THB 8.1 billion, which is THB 1.5 billion over the Bank of Thailand's reserve requirements.
Total consolidated capital funds stood at THB 56.2 billion as at 30 September 2022, whilst. BIS ratio stood at 20.5%, of which 15.0% comprised Tier-1-capital.
Source: CIMB Thai Bank