CIMB’s net profit jumps 36%

Tengku Zafrul:

KUALA LUMPUR: CIMB Group Holdings Bhd’s net profit for the second quarter ended June 30 jumped 36.4% year-on-year (yoy) to RM872.83mil boosted by its consumer and wholesale banking operations.

Net interest income rose on a yoy basis as well to RM2.35bil from RM2.27bil while operating expenses were 0.7% and 2.2% lower yoy and quarter on quarter respectively.

Its second quarter cost-to-income ratio stood at 53.6%, the company said in its press release.

“Our Consumer and Wholesale Banking divisions continue to perform well, especially with the improved capital market activity in 2Q. Strict cost controls resulted in a 0.7% yoy decline in operating costs and coupled with the improved revenues, our first half net profit was 1.7% better yoy,” CIMB Group’s chief executive Tengku Datuk Seri Zafrul Aziz said.

“Our CET1 capital ratio strengthened to 10.7% and is on-track toward our yearend target of 11%. We have also proposed a 40% dividend payout of 8 sen per share for the first half of this year. Given the macroeconomic conditions, we are pleased with our 1H16 performance,” he added.

CIMB’s consumer banking segment’s pretax profit increased by 35.8% yoy and 14% qoq due to regional loan growth coupled with lower overhead costs and provisions.