STELLAR PERFORMANCE
CIMB Group Holdings Bhd has posted a record six-month net profit of RM3.9 billion — an increase of 44 per cent year-on-year — but the bank remains cautious about the full-year prospects because of global headwinds.
CIMB Group Holdings Bhd’s net profit surged 44 per cent to a record RM3.9 billion in the six months ended June 30 but it remains cautious about the fullyear prospects given the global headwinds.
The record profit was fuelled by a RM928 million gain from the sale of a 20 per cent stake in CIMB-Principal Asset Management and 10 per cent stake in CIMB-Principal Islamic Asset Management.
The gains raised the group’s return on average equity in the first half to 11.5 per cent, and reduced its cost-to-income ratio to 46.1 per cent.
CIMB group chief executive officer Tengku Datuk Seri Zafrul Tengku Abdul Aziz said the group was relatively cautious about growth prospects this year in view of rising global trade tensions and market uncertainties.
“Nevertheless, we remain focused on achieving our T18 targets, subject to recovery of capital markets and continued improvement in asset quality across Indonesia, Thailand and Singapore.
“CIMB Malaysia is expected to track the domestic economy and investment climate. CIMB Singapore’s prospects will be driven by regional economic conditions. CIMB Thai and CIMB Niaga’s business recalibration initiatives are progressing well,” he said.
CIMB is finalising its next midterm growth plan premised on customers, people and sustainability, among others.
CIMB said its consumer banking had chalked up a stellar performance, posting a 34.7 per cent increase in pre-tax profit, while commercial banking’s pre-tax profit rose 19.9 per cent.
Lower year-on-year operating expenses of 7.3 per cent and loan loss provisions of 29.4 contributed to the group’s net profit.
The group declared a first interim net dividend of 13 sen per share, to be paid via cash or an optional dividend reinvestment scheme.
The group’s consumer revenue growth was underpinned by good non-interest income performance, steady net interest income growth and lower provisions. Its total gross loans grew 3.4 per cent while total deposits were 1.5 per cent higher.