# CIMB Thai Q2 Profit Surges Fivefold on Income Growth and Lower Credit Losses

- Link: https://www.thailand-business-news.com/banking/320814-cimb-thais-second-quarter-profit-surged-more-than-fivefold-driven-by-higher-operating-income-and-reduced-credit-losses
- Published: 2026-07-24T07:40:00+07:00
- Author: Nadjib Mohamed

**CIMB Thai’s Q2FY2026 net profit surged over fivefold to 886.3 million baht, driven
by lower credit losses and higher operating income. H1 net profit rose 47% to 1.49
billion baht. Loans grew 4.1%, deposits increased 2.6%, NPL ratio improved to 2.1%,
with capital ratios remaining strong.**

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## Key Points

**Q2 FY2026 Performance:**

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 * CIMB Thai’s net profit surged fivefold to 886.3 million baht, driven by higher
   operating income and a 76.3% drop in credit losses
 * Net interest income rose 35.2%; operating expenses fell 4.5%

**H1 FY2026 Results:**

 * Six-month net profit grew 47% to 1.49 billion baht
 * NIM improved to 2%; credit losses dropped 30.4%

**Balance Sheet Strength:**

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 * Gross loans rose 4.1% to 242.2 billion baht; NPL ratio improved to 2.1%
 * Capital adequacy ratio stood strong at 19.7%

### Strong Second-Quarter Profit Growth

**CIMB Thai Bank PCL**, the majority-owned subsidiary of **CIMB Group Holdings Bhd**,
reported a **more than fivefold surge in net profit** for the second quarter of 
FY2026, reaching **886.3 million Thai baht**, up from 174.5 million baht a year 
earlier. The strong performance was driven by a **76.3% drop in expected credit 
losses** to 104.9 million baht and a **21.1% rise in operating income** to 2.63 
billion baht. Net interest income climbed **35.2%** to 1.37 billion baht, while 
net fee and service income grew **16.7%** to 352.3 million baht. Operating expenses
also eased **4.5%**, reflecting improved cost discipline alongside stronger revenue
generation.

---

### Resilient First-Half Performance

For the **six months ended June 30, 2026**, CIMB Thai’s net profit rose **47%** 
to **1.49 billion baht**, compared with 1.01 billion baht previously. CEO **Wut 
Thanittiraporn** attributed this to **higher operating income, tighter cost control,
and reduced loan-loss provisions**. Operating income increased **9.8%**, while expenses
fell slightly and expected credit losses dropped **30.4%** year-on-year. The **net
interest margin** improved marginally to **2%**, from 1.9%, as **lower funding costs
offset weaker asset yields**, underscoring the bank’s ability to sustain profitability
despite a challenging rate environment.

### Solid Balance Sheet and Capital Strength

CIMB Thai’s **balance sheet remained healthy** as at end-June 2026. **Total gross
loans** rose **4.1%** to **242.2 billion baht**, while **deposits increased 2.6%**
to **309.2 billion baht**. **Asset quality improved**, with the **gross NPL ratio
easing to 2.1%** from 2.2%, and the **loan loss coverage ratio strengthening to 
179.3%**. Total **allowances for expected credit losses** stood at **8.9 billion
baht**, exceeding regulatory requirements by 1.5 billion baht. The bank’s **capital
position remained robust**, with **total capital funds of 59.4 billion baht** and
a **BIS ratio of 19.7%**, including **15.4% Tier 1 capital**—reflecting strong resilience
and a solid buffer against potential risks.

**Source** : [CIMB Thai’s 2Q profit jumps over fivefold on operating income, lower credit losses](https://theedgemalaysia.com/node/811474)