CIMB revenue rises 12pc, net profit eases
KUALA LUMPUR: CIMB Group Holdings Bhd’s net profit eased 14.4 per cent in the third quarter of this year, although revenue edged up 12 per cent.
The group posted a RM1.01 billion net profit in the quarter ended Sept 30, down from RM1.18 billion in the same period a year ago. Revenue rose to RM4.64 billion from RM4.14 billion last year.
For its nine-month period, CIMB’s net profit eased 16.9 per cent year-on-year to RM3.71 billion from RM4.47 billion, while revenue decreased to RM13.27 billion from RM13.31 billion.
Group chief executive officer Tengku
Datuk Seri Zafrul
Tengku Abdul Aziz said CIMB’s revenue was driven by higher net interest income and non-interest income, coupled with lower provisions.
“We are pleased with our performance for the first nine months despite the challenging operating environment. We remain on track to meet our key financial targets while continuing to be vigilant.
“Tangible progress has been made in all our Forward23-related investments to future-proof the group. We will continue to make investments, particularly in people and technology, to ensure the group’s resilience,” he said.
CIMB’s net interest margin declined slightly to 2.47 per cent during the nine months, mainly from the spread compression in Malaysia and Thailand.
Loan loss provisions declined 9.8 per cent to RM1.03 billion, equivalent to a loan loss charge of 0.38 per cent.
The group’s total gross loans grew 5.6 per cent year-on-year, with strong growth posted by Thailand (9.0 per cent) and Malaysia (4.5 per cent).
Total deposits were 7.3 per cent higher year-on-year, contributed by Malaysia (8.9 per cent) and Thailand (6.1 per cent).
Tengku Zafrul said the group had been investing for the future to ensure it remains resilient and competitive.
Its asset quality improved significantly from enhanced risk management initiatives, he added.