CIMB’s Q3 net profit 27% higher

> Lifted by rise in non-in­ter­est in­come and sale of 51% stake in In­done­sian in­surer

The Sun (Malaysia) - - SUNBIZ -

PETAL­ING JAYA: CIMB Group Hold­ings Bhd’s net profit for the third quar­ter ended Sept 30, 2016 rose 27.3% to RM1.02 bil­lion from RM803.89 mil­lion a year ago on higher non-in­ter­est in­come and a RM150 mil­lion gain from the sale of its 51% in­ter­est in PT CIMB Sun Life.

CIMB’s rev­enue in­creased 7.4% to RM4.12 bil­lion from RM3.84 bil­lion in the third quar­ter last year.

“On con­sumer bank­ing, we will ac­cel­er­ate our dig­i­tal propo­si­tion across the re­gion and fo­cus on re­cal­i­bra­tion in Thai­land. On com­mer­cial bank­ing, we will sus­tain the mo­men­tum in Malaysia and In­done­sia, whilst fo­cus­ing on as­set qual­ity in Thai­land. We ex­pect bet­ter loans growth in cor­po­rate bank­ing and, sub­ject to mar­ket con­di­tions, steady im­prove­ment in the cap­i­tal mar­kets busi­ness.

“As we ap­proach the half­way mark of our T18 Strat­egy, we will fine-tune our pro­grammes where nec­es­sary, to en­sure a sus­tain­able growth tra­jec­tory across all busi­nesses within the group.

“We are also ex­cited about Viet­nam, where we have been granted a full bank­ing li­cence and will be­gin op­er­a­tions in De­cem­ber 2016. With a stronger foun­da­tion in place, we are now in a bet­ter po­si­tion to ad­vance our Asean fran­chise,” said CIMB Group chief ex­ec­u­tive Tengku Datuk Seri Zafrul Aziz Tengku Ab­dul Aziz.

For the nine months pe­riod, CIMB’s net profit jumped 34% to RM2.71 bil­lion from RM2.02 bil­lion a year ago, while rev­enue in­creased 3.5% to RM11.75 bil­lion com­pared with RM11.35 bil­lion last year.

The group saw a 3.5% ex­pan­sion in nine-month op­er­at­ing in­come with well-con­tained op­er­at­ing ex­penses, bring­ing about a 5.8% year-on-year im­prove­ment in the net profit of RM2.71 bil­lion com­pared with the busi­ness-asusual nine-month 2015 net profit of RM2.56 mil­lion.

“We saw strong 3Q16 per­for­mance in con­sumer bank­ing for Malaysia, In­done­sia and Thai­land. Across the group, con­sis­tent ef­forts in man­ag­ing cost re­sulted in an im­prove­ment in our cost-to-in­come ra­tio to 53.2% in 3Q16. Our cap­i­tal po­si­tion is strength­en­ing and we re­main on track to achieve our 11% CET1 (com­mon eq­uity tier 1) tar­get for 2016,” said Tengku Zafrul.

Nine-month 2016 net earn­ings per share stood at 31.4 sen, while the an­nu­alised net re­turn for the pe­riod on av­er­age eq­uity was 8.5%.

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