KUALA LUMPUR (May 24): CIMB Group Holdings Bhd reported a 45% rise in first quarter net profit at RM1.18 billion from a year earlier on higher interest, non-interest and Islamic banking income. Profit also rose on lower bad loan allowance.  

In a statement to Bursa Malaysia today, CIMB said net profit rose to RM1.18 billion in the first quarter ended March 31, 2017 (1QFY17) from RM813.8 million. Revenue was higher at RM4.36 billion versus RM3.73 billion.

"CIMB Group’s 1QFY17 operating income grew 17.1% Y-o-Y to RM4.36 billion largely driven by a 32.3% growth in non-interest income in line with improved capital market activity. 1QFY17 net interest income rose 11.5% from loans growth and improvement in net interest margin," CIMB said.

CIMB said Islamic banking income rose to RM473.96 million from RM437.51 million. Bad loan allowance was lower at RM424.52 million compared to RM464.56 million.

According to CIMB, the group has a good start in 2017 as it recorded its highest ever quarterly net profit at RM1.18 billion in 1QFY17. CIMB said this was in tandem with a gradually improving regional economic environment and capital market activity.

"Looking ahead, the group is cautiously optimistic for the rest of 2017, with more stable economic conditions, increased regional activity, improved capital markets and declining provisions across its key geographies. The group is currently on track to achieve its key financial targets for 2017," CIMB said.