CIMB Thai’s 2022 strategy
reaffirms its aspirations to become a Digital-led bank with ASEAN reach, while staying focused on driving its core businesses ofConsumer Banking, Wholesale Banking as well as Treasury and Markets to deliver best-in-class sustainable financial services and experiences to the organisation’s customers, stakeholders and communities
Paul Wong Chee Kin, President and CEO of CIMB Thai Bank (“CIMB Thai” or “the Bank”) emphasised that CIMB Thai’s 2022 strategy is to remain focused on driving sustainable financial solutions and personalised services through its key business drivers while leveraging its ASEAN network and digital platforms; all of which are aligned to the Bank’s Forward23+ strategic themes.
CIMB Thai’s Vision and Forward23+ Strategy
CIMB Thai aims to be ‘a digital-led bank with ASEAN reach’. This vision is anchored by the organisation’s Forward23+ strategy which embeds key strategic themes surrounding portfolio reshaping, cost efficiency, diversification of deposits, strengthening risk discipline, human capital transformation and digitising for value, as well as a recent addition, sustainability. The Bank’s strategy is driven by three core growth engines, namely Consumer Banking, Wholesale Banking and Treasury and Markets.
Consumer Banking – Digital and data play an integral part in scaling up the business and expanding CIMB Thai’s reach. The Bank will continue to enhance, develop new features as well as add new products to its CIMBTHAI Digital Banking app to provide a seamless digital banking experience for our users and customers. Recently, two new digital savings products, Speed D and Speed D+, have been launched, offering fresh product features to cater for diversified needs.
Additionally, CIMB Thai’s Consumer Banking business aspires to be a leader in wealth management by growing its award-winning wealth management franchise. New products such as the ‘Wealth Credit Line’ and digital bonds have been launched in 2021 to help customers take advantage of a wide range of investment and financing opportunities. Primary bond subscriptions made available on the CIMB THAI Digital Banking app have been gaining good traction and are showing rapid growth, signifying increasing confidence in our digital wealth platform. We will extend this service further by enabling digital secondary bond transactions on the application. All these are accompanied by the expertise of CIMB Thai’s professional wealth advisors and relationship managers who will tend to customers’ investment needs.
For consumer financing, the Bank will judiciously optimise and digitise its lending activities, which includes mortgages as well as personal and vehicle loans, leveraging digital acquisitions and partnerships to tap into new segments. The Bank’s mortgage, refinancing and personal loans have been increasingly popular, being among the first choices for customers. Furthermore, CIMB Thai desires to enhance its synergies with our subsidiaries, CIMB Thai Auto and WorldLease, through deepened dealer relationships and diversified product offerings supported by digital enhancements.
Wholesale Banking – For the Wholesale Banking business, CIMB Thai will continue to provide value-added, long-term and sustainable services and solutions to all clients through its ASEAN presence, which enables the Bank to leverage network synergies with CIMB Group. Integrating ASEAN into CIMB Thai’s business model allows the Bank to strengthen its cross-border collaborations and explore new partnerships, giving clients additional financing options and growth opportunities beyond Thailand.
Treasury and Markets – The Bank aims to maintain its market-leading position in both product origination and distribution. In 2021, our treasury franchise continued to be a key shaper of the market and became one of the pioneers of the new Thai Overnight Repurchase Rate (THOR), with our efforts being recognised by the BOT Awards. This year, CIMB Thai will continue to expand its flow business through Consumer Wealth (bonds, structured deposits, FX, FCD) and Wholesale Banking (FX, derivatives, investments). This will be explored hand-in-hand via scaling up digitalisation of the business to boost distribution capabilities, drive efficiency and improve customer experience. The Bank will also explore new revenue streams such as FX income from cross border payments and remittances, and custodian services.
2021 Financial Performance and Highlights
For the financial year ended 31st December 2021, CIMB Thai recorded a consolidated net profit of THB 2,440.6 million, an increase of THB 1,150 million or 89.1% year-on-year (“YoY”) compared to 2020’s performance. The Bank registered improved performance despite a 3.9% drop in operating income, mainly due to better cost controls which resulted in an 8.1% decline in operating expenses, as well as a 25.7% decrease in expected credit losses.
Gross NPLs stood at THB 7.9 billion, with a lower equivalent gross NPL ratio of 3.7% compared to 4.6% in 2020. The lower NPL ratio was attributed to the sale of NPLs and efficient risk management policies, in addition to improved asset quality management and loan collection processes.
CIMB Thai’s loan loss coverage ratio stood at 117.5%, an increase from 93.3% as at end December 2020. Total allowance for expected credit losses stood at THB 8.3 billion, THB 1.5 billion above the Bank of Thailand’s reserve requirements.
Throughout the year, CIMB Thai continued to receive market recognitions in multiple areas, signifying our progress and achievements in key areas where we play to our strengths. Moving forward and in the years to come, we will remain committed to driving sustainable growth whilst striving to provide service excellence and innovative financial solutions to our customers, stakeholders and society.
