On a YoY basis, net interest income increased by THB 35.0 million or 1.5%, mainly driven by loan expansion. Other operating income increased by THB 367.3 million or 46.5%, mainly from higher gains on investments and sale of non-performing loans. These were partially offset by lower net fee and service income of THB 57.7 million, or a 15.0% decline, mainly due to lower fee income from insurance brokerage and underwriting income.
Operating expenses increased by THB 171.1 million or 9.6%, mainly from higher impairment loss on the sale of properties. However, the 3M2023 cost to income ratio improved to 51.2% compared to 51.4% in 3M2022 as a result of stronger operating income growth compared to operating expenses.
Net interest margin (NIM) over earning assets stood at 2.6% in 3M2023, compared to 2.8% in 3M2022, as a result of higher cost of funds.
As at 31 March 2023, total gross loans (inclusive of loans guaranteed by other banks and loans to financial institutions) stood at THB 237.4 billion, an increase of 0.9% from 31 December 2022. Deposits (inclusive of bills of exchange, debentures and selected structured deposit products) stood at THB 267.9 billion, a decrease of 7.6% from THB 289.7 billion as at end of December 2022. The modified loan to deposit ratio increased to 88.6% from 81.2% as at 31 December 2022.
Gross non-performing loans (NPL) stood at THB 7.6 billion, with a lower gross NPL ratio of 3.1% from 3.3% as at 31 December 2022 due to portfolio reshaping in line with the wind down of Commercial Banking. 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 stood at 122.6% as at 31 March 2023, from 114.6% at the end of December 2022. Total allowance for expected credit losses stood at THB 8.6 billion, THB 1.5 billion over the Bank of Thailand's reserve requirements.
Total consolidated capital funds as at 31 March 2023 stood at THB 57.8 billion, while the BIS ratio stood at 22.2% of which 16.5% comprised Tier-1 capital.
Source: CIMB Thai Bank