CIMB’s Indonesian subsidiary records strong profit growth


CIMB Niaga's total gross loans were lower year-on-year as the bank maintained a conservative loan growth strategy.

KUALA LUMPUR: CIMB Group Holdings Bhd’s Indonesian operation, represented by 92.5% owned indirect subsidiary PT Bank CIMB Niaga Tbk (CIMB Niaga), recorded a 390% year-on-year (y-o-y) growth in consolidated net profit for the first nine months of 2016.

In a press statement released on Friday, CIMB Group said CIMB Niaga posted an unaudited group net profit of 1.3 trillion rupiah (RM417.3mil) for the period up to Sept 30, translating to an earnings per share of 51.68 rupiah.

The improved net profit came on the back of a 4.3% y-o-y increase in net interest income to 8.89 trillion rupiah (RM2.85bil) and a 29.0% y-o-y rise in non-interest income, mainly due to improved treasury and capital market businesses. There was also a 4.9% in decline in provision expense.

However, total gross loans were lower y-o-y at 174.08 trillion rupiah (RM55.9bil) as at Sept 30 versus 178.89 trillion rupiah (RM57.5bil) previously, as the bank maintained a conservative loan growth strategy.

Nonetheless, the group’s gross non-performing loans ratio stood at 4.21% as at Sept 30, up from 3.17% a year earlier, based on CIMB Niaga’s financial statements.

CIMB Niaga president director Tigor M. Siahaan said in the press statement that the performance for the first nine months of 2016 was according to plan given the challenging operating environment.

“We have been making positive and steady progress in our revenue topline as reflected in the improvement in net interest income and non-interest income. We have managed operating expenses, controlling it at 1.9% y-o-y growth.

“However, the slower economy resulted in slower loans growth,” he said.

“We will continue our cautious growth trajectory with asset quality selection remaining a priority. At the same time we will continue strengthening our digital franchise to enable us to enhance our customer experience, product offering and engage our customers 24/7 (24 hours, 7 days a week) through our digital channels.”

The press statement did not give third-quarter results comparison for 2016 and 2015. 

With total assets of 237.12 trillion rupiah (RM76.2bil) as at Sept 30, CIMB Niaga maintained its position as Indonesia’s fifth largest bank by assets.

Subscribe or renew your subscriptions to win prizes worth up to RM68,000!

Monthly Plan

RM13.90/month

Annual Plan

RM12.33/month

Billed as RM148.00/year

1 month

Free Trial

For new subscribers only


Cancel anytime. No ads. Auto-renewal. Unlimited access to the web and app. Personalised features. Members rewards.
Follow us on our official WhatsApp channel for breaking news alerts and key updates!
   

Next In Business News

Decarbonising cement: Are we ready?
After a homeowner passes
A stinky nuisance: When septic tanks burst
Ringgit to trade in tight range of 4.46-4.48 versus US dollar next week
Building a firm facade
Portfolio positioning under Trump era
EQ expands to Thailand
RHB, CGC in LCTF portfolio guarantee deal
Market struggles to find direction
Sapura Energy ‘in a good place now’

Others Also Read