BANGKOK, 20 January 2026 – CIMB Thai Bank PCL reported an unaudited consolidated net profit of THB 2,257.3 million for the financial year ended 31 December 2025, marking a 20.9% year-on-year decline, as weaker operating income and higher credit provisions weighed on earnings.
President and Chief Executive Officer Wut Thanittiraporn said profit before tax fell 20.5% to THB 2,830.4 million, primarily due to an 8.8% contraction in operating income and a 34.3% increase in expected credit losses (ECL). These pressures were partially offset by a 17.2% reduction in operating expenses.
Income Pressured by Lower Loans and Margins
CIMB Thai Group’s consolidated operating income declined THB 1,331.0 million year-on-year to THB 13,771.5 million. The drop was mainly attributed to weaker net interest income, which fell 12.4% or THB 1,178.0 million, reflecting lower loan balances and margin contraction during the year.
Net fee and service income also declined 7.4% or THB 106.2 million, largely due to reduced insurance brokerage income. Other operating income edged down 1.1% or THB 46.8 million, amid lower gains from financial instruments measured at fair value through profit or loss, bad debt recoveries and gains on the sale of non-performing loans, partly offset by higher investment gains.
Cost Controls Improve Efficiency
Operating expenses fell 17.2% year-on-year or THB 1,522.6 million, driven by lower impairment losses on properties for sale, reduced personnel costs and a decline in specific business tax following lower interest income. As a result, the cost-to-income ratio improved to 53.3% in 2025, compared with 58.7% in 2024, highlighting stronger cost discipline.
The bank’s net interest margin (NIM) over earning assets narrowed to 1.9% in 2025, from 2.2% in 2024, reflecting lower yields on earning assets amid a softer lending environment.
Balance Sheet and Asset Quality
As at 31 December 2025, total gross loans (including loans guaranteed by other banks and loans to financial institutions) stood at THB 232.8 billion, down 7.6% year-on-year. Deposits, including bills of exchange, debentures and selected structured deposit products, declined 6.9% to THB 301.5 billion, resulting in a modified loan-to-deposit ratio of 77.2%.
Asset quality improved during the year, with gross non-performing loans (NPLs) declining to THB 5.2 billion. The NPL ratio improved to 2.2%, from 2.6% at end-2024, supported by NPL sales and stronger asset quality management and loan collection efforts.
The loan loss coverage ratio strengthened to 171.5%, up from 149.0% a year earlier. Total allowance for expected credit losses stood at THB 8.8 billion, exceeding the Bank of Thailand’s reserve requirements by THB 1.5 billion.
Capital Position Remains Strong
CIMB Thai’s capital position remained robust, with total consolidated capital funds of THB 60.8 billion as at end-December 2025. The BIS capital adequacy ratio stood at 21.3%, of which 16.8% comprised Tier-1 capital, providing a solid buffer against potential economic volatility.
