CIMB reports big jump in Q2 profit

KUALA LUMPUR: Malaysia’s secondbiggest bank CIMB Group Holdings Bhd yesterday posted a 36% jump in secondquarter profit due to higher net interest income, but said it would not be able to meet its loan growth and return on equity targets for the full year.

Net profit totalled 872.8 million ringgit ($216.31 million) for the quarter ended June, compared with 639.8 million ringgit in the same period a year ago. Two analysts had an average profit forecast of 695 million ringgit for the quarter, according to Thomson Reuters data.

Net interest income for the quarter rose about 4% to 2.35 billion ringgit.

“While we expect a better performance in 2H16, our loan growth and ROE expectations will likely be below our original 2016 target,” CIMB group chief executive Zafrul Aziz said in a statement.

“All other targets on capital, cost and dividend payout remain on track,’’ he said.