CIMB sees record year

Sec­ond half 2018 re­sults ex­pected to be at least same as first half or bet­ter

The Star Malaysia - StarBiz - - Front Page - By DANIEL KHOO danielkhoo@thes­tar.com.my

KUALA LUMPUR: CIMB Group Hold­ings Bhd, the coun­try’s sec­ond-largest lender by as­set size, is bullish on 2018 and ex­pects a record year in terms of profit.

“The first half has been good and we hope our per­for­mance will sus­tain in the sec­ond half. We are just two months into the sec­ond half and it has been quite a strong two months. We are also see­ing a pick-up in the cap­i­tal mar­kets. Also in the re­gion, in coun­tries such as Thai­land and Sin­ga­pore, we are see­ing strong im­prove­ment as well,” group chief ex­ec­u­tive of­fi­cer Tengku Datuk Seri Zafrul Aziz told re­porters at a press con­fer­ence yes­ter­day.

“We are cer­tainly op­ti­mistic. Judg­ing from the pipe­line that we have mov­ing for­ward, we should see at least the same if not a bet­ter per­for­mance in the sec­ond half,” he added.

In the first half to end-June, CIMB’s net profit jumped 43.9% to a record RM3.29bil from RM2.28bil be­fore. Its rev­enue in­creased by 5.5% to RM9.16bil from RM8.68bil.

The bank said its first-half earn­ings were boosted by a gain from the sale of 20% of CIMB-Prin­ci­pal As­set Man­age­ment and 10% of CIMB-Prin­ci­pal Is­lamic As­set Man­age­ment amount­ing to RM928mil.

Tengku Zafrul said its per­for­mance for the first half had al­sobeen sup­ported by its con­sumer bank­ing divi­sion, not­ing that the Malaysian op­er­a­tions for the con­sumer side have been strong, while the com­mer­cial bank­ing was also in good stead.

In its lat­est re­ported sec­ond quar­ter ended June 30, the bank posted a record net profit of RM1.98bil, an 80% in­crease com­pared to the RM1.10bil posted a year ago.

How­ever, strip­ping out the gain from the sale of the 20% of CIMBPrin­ci­pal As­set Man­age­ment and 10% of CIMB-Prin­ci­pal Is­lamic As­set Man­age­ment, CIMB’s net profit ac­tu­ally fell by 4.5%.

It said that rev­enue rose by 12.4% to RM4.86bil from RM4.33bil. Earn­ings per share was at 21.29 sen com­pared with 12.25 sen pre­vi­ously.

The bank said it recorded an over­all year-on-year (y-o-y) loan growth fig­ure of 3.4% for the group in the first half of the year con­sist­ing of 4.0% for con­sumer bank­ing, 1.4% for com­mer­cial bank­ing and 3.1% for whole­sale bank­ing.

Tengku Zafrul said the over­all loan growth fig­ure was im­pacted by In­done­sia due to the nega­tive ef­fects from a for­eign ex­change (forex) trans­la­tion, while the Malaysian con­sumer had been strong and this helped buoy its loan growth fig­ure.

“Our loan growth tar­get for the full year is about 6%. If we did not have the forex im­pact from the weak­ened ru­piah in the first half, the loan growth would have ac­tu­ally gone up by 7% this year,” he said.

He said no­tably that loan growth from the Malaysian con­sumer was at­trib­uted to a growth in mort­gages of 10%.

“The res­i­den­tial prop­erty sec­tor is pick­ing up again. The main com­po­nent of the con­sumer loans is mort­gages and it is still our big­gest port­fo­lio for the seg­ment. I am not re­ally sur­prised by the strong per­for­mance on the con­sumer bank­ing side af­ter tak­ing into ac­count the tax hol­i­day,” Tengku Zafrul said.

The bank said in its state­ment that its con­sumer bank­ing pre-tax profit grew 20.2% y-o-y from sus­tained busi­ness mo­men­tum and bet­ter cost man­age­ment.

Com­ment­ing on its net in­ter­est mar­gin (NIM), Tengku Zafrul said that this fig­ure was at about 2.5% now, which was slightly lower than last year.

Tengku Zafrul: The res­i­den­tial prop­erty sec­tor is pick­ing up again.

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