SET-listed CIMB Thai Bank's unreviewed consolidated net profit plunged 98.2% in 2018, largely due to higher expenses and lower gains on trading, foreign exchange and investments.
CIMBT posted a net profit of 6.9 million baht for 2018, compared with 385 million in the previous year, according to a filing with the Stock Exchange of Thailand.
Gains on trading and foreign exchange transactions declined to 1.05 billion baht in 2018 from 2.24 billion in the preceding year, while gains on investment tumbled to 19.5 million baht from 107 million.
The small bank's net fee and service income dropped to 1.81 billion baht in 2018 from 1.94 billion a year earlier, but net interest income rose to 10.7 billion baht from 10.2 billion.
Operating income jumped to 8.34 billion baht last year, but total expenses surged to 8.34 billion baht from 7.61 billion.
"For the year ending Dec 31, 2018, operating expenses increased by 733 million baht or 9.6% year-on-year, mainly from higher personnel cost in line with the Bank's Fast Forward expansion strategy and loss on sale of properties," Kittiphun Anutarasoti, the bank's president and chief executive, said in a release.
"This resulted in a higher cost-to-income ratio of 61.7% in 2018 compared with 57.9% in 2017."
CIMBT set aside an impairment charge for credit loss of 4.92 billion baht in 2018, down from 5.05 billion a year earlier.
Consolidated non-performing loans (NPLs) reached 9.9 billion baht, the bank said without providing a comparative figure.
The bank's gross NPL ratio fell to 4.3% at the end of 2018 from 4.8% a year earlier.
CIMBT's loan-loss coverage ratio rose to 107% at the end of 2018 from 93.2% a year earlier.
CIMBT shares closed yesterday on the SET at 0.77 baht, down two satang, in trade worth 444,480 baht.