CIMB announces record quarterly net profit of RM1.18 billion for first quarter
KUCHING: CIMB Group Holdings Bhd (CIMB) yesterday reported a profit before tax (PBT) of RM1.61 billion for the first quarter of 2017 (1Q17).
On a year-on-year (y-o-y) basis, the group operating income expanded 17.1 per cent, translating to a 30 per cent y-o-y improvement in pre- provisioning operating profit (PPOP) and a 45 per cent yo-y growth in net profit to RM1.18 billion.
The 1Q17 net earnings per share (EPS) stood at 13.3 sen, while the annualised 1Q17 net return on average equity (ROE) was 10.3 per cent.
“We had a good start to 2017, recording our highest ever quarterly net profit of RM1.18 billion in 1Q17 in tandem with the gradually improving regional economic conditions and capital market activity.
“Our main business units are gaining traction, with cost management initiatives continuing to show progress and asset quality showing sustained improvement.
“Better capital and balance sheet management has brought about more focused growth, improved margins, a healthier current account, savings accout (CASA) ratio and a strengthened capital position,” said CIMB group chief executive Tengku Datuk Sri Zafrul Aziz.
CIMB’s 1Q17 operating income grew 17.1 per cent y-o-y to RM4.36 billion largely driven by a 32.3 per cent growth in non-interest income in line with improved capital market activity.
1Q17 net interest income rose 11.5 per cent from loans growth and improvement in net interest margin (NIM), operating expenses were 7.4 per cent higher y-o-y but was only 3.9 per cent higher after excluding foreign currency translation effects, as the group’s cost management initiatives continue to show progress.
The positive JAW brought about the 30 per cent improvement in the group’s PPOP while the group’s PBT was 43.7 per cent higher at RM1.61 billion, with loan provisions declining 8.8 per cent y-o-y.
“Our 1Q17 results are testament to the stronger foundations that we have built since we embarked on our T18 Strategy. The strong start to the year also provides the impetus for us to continue embedding the 5C’s - capital, cost, culture, customer experience and compliance - across all our T18 programmes. We will continue to keep a tight rein on cost, strive to enhance operating income whilst expecting improvement in asset quality.
“Looking ahead, the group is cautiously optimistic for the rest of 2017, with more stable economic conditions, increased regional activity, improved capital markets and declining provisions across our key geographies. The group is currently on track to achieve its key financial targets for 2017,” said Tengku Zafrul.