On a YoY basis, operating income declined by THB 406.5 million, or 2.9% to THB 13,753.5 million from the contraction in net interest income of THB 346.0 million or 3.5% due to higher interest expenses, coupled with lower interest income on loans, as well as hire purchase business. Other operating income recorded lower by THB 107.9 million or 3.9%, mainly from a decrease in gains on sale of investments. These were partially offset by an increase of THB 47.5 million or 3.4% in net fee and service income, driven by higher underwriting fee income.
For the year ended 31 December 2022, operating expenses remained flat from continued cost management, while cost to income ratio was higher at 57.1% in 2022 compared to 55.5% in 2021 due to lower operating income.
Net interest margin (NIM) over earning assets stood at 2.7% in 2022, compared to 3.1% in 2021, arising from higher cost of funds and lower loan yields.
As at 31 December 2022, total gross loans (inclusive of loans guaranteed by other banks and loans to financial institutions) stood at THB 235.3 billion, an increase of 11.0% from 31 December 2021. Deposits (inclusive of bills of exchange, debentures and selected structured deposit products) stood at THB 289.7 billion, an increase of 21.0% from THB 239.5 billion as at end of December 2021. The modified loan to deposit ratio decreased to 81.2% from 88.5% as at 31 December 2021.
Gross non-performing loans (NPL) stood at THB 7.8 billion, with a lower equivalent gross NPL ratio of 3.3% compared to 3.7% as at 31 December 2021. The lower NPL ratio was mainly due to the sale of some NPLs in 2022, as well as improved efficiency in risk management policies, asset quality management and loan collection processes.
CIMB Thai Group's loan loss coverage ratio stood at 114.6% as at 31 December 2022, from 117.5% at the end of December 2021. Total allowance for expected credit losses stood at THB 8.2 billion, THB 1.5 billion over the Bank of Thailand's reserve requirements.
Total consolidated capital funds as at 31 December 2022 stood at THB 57.6 billion, whilst BIS ratio stood at 21.8%, of which, 16.1% comprised Tier-1 capital.
Source: CIMB Thai Bank