CIMB Niaga posts higher earnings in H1
PETALING JAYA: PT Bank CIMB Niaga Tbk, the Indonesian unit of CIMB Group Holdings Bhd, recorded a 15% year-on-year (y-o-y) higher net profit of 1.58 trillion rupiah in the first half of financial year 2018 (H1’18).
In a filing with Bursa Malaysia yesterday, CIMB Group said that the earnings growth of its 92.5% indirectly held subsidiary was primarily because of the increase in non-interest income and the decline in provision expenses.
According to CIMB Niaga president director Tigor M Siahaan ( pic), the bank’s operating income in the six-month period grew by 1.5% y-oy, mostly due to the 32.6% y-o-y improvement in non-interest income.
“Our H1’18 performance continued to improve. Operating costs continued to be well managed, rising only 3.4% y-o-y, while the gradual improvement in the economic environment positively impacted our provisions which declined 27.1% y-o-y.
“We will continue the cautious growth trajectory with asset quality as a priority,” he said.
Currently, CIMB Niaga is Indonesia’s second-largest national private-listed bank in terms of assets. As at June 30, CIMB Niaga’s total assets stood at 260.1 trillion rupiah, representing a 7.6% y-o-y growth.
The bank’s total gross loans had increased by 3% y-o-y to 185.7 trillion rupiah as at June 30. Wholesale banking represented the largest proportion of the loan book, with corporate loans at 70 trillion rupiah (38%) and commercial loans at 32 trillion rupiah (17%).
“Our strategy to focus on the mortgage and small medium enterprise (SME) segments is gaining traction, with each segment growing by 8.9% and 6.2% y-o-y, respectively, while our corporate loans grew by 8.8% y-o-y,” said Tigor.
In the syariah banking segment, CIMB Niaga’s total financing stood at 21.3 trillion rupiah as at June 30. At present, the syariah business segment represents about 11.4% of CIMB Niaga’s total loans as compared to 7.5% in the previous year.
In terms of total deposits, the syariah segment’s share stood at 10.4% as at 1H18 from 7.1% last year.
CIMB Niaga’s capital adequacy ratio stood at 18.57% as at June 30, representing a 14-basis-point increase from the corresponding period last year.
“Going forward, we will continue to optimise our current and savings account ratio with our consumer and SME digitalisation, and strengthen our syariah business proposition and syariah-compliant product offerings,” Tigor said.
As at June 30, about 93.5% of the total transactions by CIMB Niaga’s customers were made through digital banking channels.