CIMB Niaga H1 profit rises to 1.8tril rupiah
JAKARTA: PT Bank CIMB Niaga Tbk (CIMB Niaga) reported a consolidated net profit of 1.8 trillion rupiah (RM503.18 million) in the first half, representing a 28.1 per cent year-on-year increase and translating to an earnings per share of 70.54 trillion.
The improved net profit came on the back of a 32.6 per cent increase in non-interest income to 1.9 trillion rupiah and a 27.1 per cent year-on-year decline in provision expenses.
CIMB Niaga’s loan loss coverage remained comfortable at 106.83 per cent.
CIMB Niaga president-director Tigor M. Siahaan said: “Our firsthalf performance continued to improve. The operating income managed to grow by 1.5 per cent year-on-year, mostly due to the 32.6 per cent improvement in non-interest income.
“Operating costs continued to be well managed, rising only 3.4 per cent year-on-year, while the gradual improvement in the economic environment positively impacted our provisions, which declined 27.1 per cent. This brought about 28.1 per cent growth in net profit to 1.8 trillion rupiah.
“We will continue the cautious growth trajectory with asset quality as a priority,” he said.
With total assets of 260.1 trillion rupiah as at June 30, representing 7.6 per cent growth, CIMB Niaga has maintained its position as Indonesia’s second largest national private-listed bank by assets.
Total gross loans increased three per cent year-on-year to 185.7 trillion rupiah as at June 30. Of the total loans, consumer loans stood at 47.9 trillion rupiah with micro, small and medium enterprise (SME) loans at 35.8 trillion rupiah.
Wholesale banking comprised the largest proportion of the loan book, with corporate loans at 70 trillion rupiah and commercial loans at 32 trillion rupiah.
“Our strategy to focus on the mortgage and SME segments is gaining traction, with each segment growing 8.9 and 6.2 per cent year-on-year, respectively, while our corporate loans grew by 8.8 per cent,” said Tigor.
Total third-party deposits stood at 190.3 trillion rupiah, underpinned by 12.8 per cent yearon-year growth in current and savings accounts.
As at June 30, 93.5 per cent of the total transactions by customers were made through digital banking channels, such as CIMB Clicks, Go Mobile, automated teller machines and Rekening Ponsel (mobile wallet).