CIMB Niaga earnings expand 11.8% on higher non-interest income

KUALA LUMPUR: CIMB Group Holdings Bhd’s indirectly-held subsidiary, PT CIMB Niaga Tbk’s (CIMB Niaga) unaudited consolidated net profit rose 11.8% year-on-year to 1.1 trillion rupiah in the first quarter ended March 31 (1Q20) from 944.18 billion rupiah a year ago, driven by higher non-interest income and lower operating expenses.

In a filing to Bursa Malaysia, CIMB Niaga president director Tigor M. Siahaan said the bank managed to achieve a double-digit net profit growth for the quarter despite the challenging environment from the Covid-19 pandemic.

“Our 11.8% year-on-year (y-o-y) net profit growth was mainly driven by an 11.5% y-o-y growth in non-interest income and a 2.7% y-o-y reduction in operating expenses.

“As a result, our cost to income ratio improved and is now below 48%. Our current account and savings account (CASA) grew 18.8% y-o-y, contributing to a 6.3% y-o-y deposits growth. Our loan loss coverage increased to 191.13%, with provision expenses rising by 8.7% y-o-y,” he added.

As of March 31, the bank noted that its capital adequacy ratio (CAR) remains at a healthy level of 19.39%, with total assets of 274.5 trillion rupiah, making it Indonesia’s second-largest privately owned bank by assets.

Meanwhile, it said that the total deposits stood at 202.6 trillion rupiah, with a CASA ratio of 60.1%. “Savings account grew by 20.3% y-o-y, driven largely by the bank’s continuous commitment to digital enhancement and customer experience,” said CIMB Niaga.