CIMB Niaga earnings surge to RM450mil
PETALING JAYA: CIMB Group Holdings Bhd’s Indonesian unit saw its net profit expand 87.5% to 1.4 trillion rupiah (RM449.84mil) in the first half of 2017 ended June 30, from 736.12 billion rupiah a year earlier.
PT Bank CIMB Niaga Tbk attributed the stellar results to higher net interest income (NII) during the period and a decline in provision expenses.
NII during the first half rose 8.9% to 6.33 trillion rupiah, whereas provision expense declined by 16.9% year-on-year, the bank said in a statement yesterday.
President director of CIMB Niaga, Tigor M. Siahaan, said: “While we remain cautious, given the economic situation, we are optimistic that our positive performance in the first half will provide a strong impetus for further improvement of our results going forward.”
He said the bank would continue to gradually strengthen its balance sheet on the back of various capital-optimisation initiatives.
“The asset quality outlook is expected to progressively improve in line with our portfolio rebalancing and improved risk management policies,” he added.
The bank’s operating income for the first half grew 6.3% and its costs increased 2.3%.
CIMB Niaga is the fifth biggest bank in Indonesia with total assets of 241.81 trillion rupiah.
Total gross loans increased 2.8% in the first half to 180.25 trillion rupiah, of which 35% was contributed by corporate borrowings, 28% consumer loans, 20% the small and medium enterprise (SME) segment and 17% commercial loans.
In terms of deposit, CIMB Niaga said the total third-party deposits stood at 174.37 trillion rupiah as at June 30, 2017, attributed to a 1.6% growth in the current and savings accounts (CASA).
“We have announced phase 2 of the CIMB Niaga sustainable bond public offering in 2017 with a minimum nominal amount offered of one trillion rupiah. All the proceeds will be allocated to finance our loan expansion efforts to sup- port CIMB Niaga’s business growth,” Tigor said.
Going forward, he said, the bank would focus on expanding its consumer and SME businesses, by building its CASA franchise and elevating its digital platform, with more cautious and selective loan disbursement policies to better manage asset quality.
“As such, we expect to see a progressive improvement in our non-performing loan ratio, subject to the economic outlook,” Tigor said.
As at June 30, 2017, about 94% of the total transactions by CIMB Niaga consumer banking were made through digital banking channels such as CIMB Clicks, Go Mobile, ATMs and e-wallet.