Thursday 28 Mar 2024
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KUALA LUMPUR (Aug 29): CIMB Group Holdings Bhd announced a 36.4% increase in net profit to RM872.83 million or 10.07 sen per share for its second financial quarter ended June 30, 2016 (2QFY16) from RM639.75 million or 7.54 sen per share a year ago.

The improved earnings were mainly due to the pickup in consumer banking, driven by regional loan growth coupled with lower overhead costs and provisions.

In its filing to Bursa Malaysia today, CIMB said its operating income went up 1.8% in 2QFY16 to RM3.9 billion, which consists of net interest income, income from Islamic banking operations and net non-interest income, from RM3.83 billion in 2QFY15.

The group declared an interim dividend of eight sen per share, which will be paid through cash or an optional dividend reinvestment scheme.

Earlier, it has announced a special interim dividend-in-specie equivalent to two sen per share involving the distribution of PT Bank CIMB Niaga Tbk's B Shares to CIMB Group shareholders on a ratio of one CIMB Niaga share for approximately every 6.39 CIMB Group shares.

For the first financial half of the year ended June 30, 2016 (1HFY16), CIMB's net profit expanded 38.3% to RM1.69 billion or 19.61 sen per share from RM1.22 billion or 14.44 sen per share a year ago, due to the regional consumer loans growth plus the fall on overhead costs and provisions in its commercial banking segment.

Profit before tax (PBT) contribution from non-Malaysians went up 25% in 1HFY16 compared to the 23% increase in 1HFY15, largely attributed to the 241% year-on-year improvement in Indonesia's PBT to RM331 million in line with lower provisions at CIMB Niaga.

Operating income for 1HFY16 was 1.5% higher at RM7.63 billion compared with RM7.51 billion a year ago, underpinned by a 6.5% improvement in net interest income but partially offset by a 9.1% decline in non-interest income, which was impacted by the weaker capital market, particularly in 1QFY16.

The group's total gross loans, excluding the "bad bank" expanded 6.6% year-on-year, or 3.9% excluding foreign exchange fluctuations.

Total deposits grew 7.1% year-on-year, or 4.6% excluding foreign exchange fluctuations. The group's loan to deposit ratio stood at 93.5% in 1HFY16 compared to 94% in 1HFY15.

The group's gross impairment ratio reduced to 3.2% as at June 2016 from 3.3% in June 2015, with higher allowance coverage of 83.5% as at June 2016.

CIMB's cost to income ratio improved to 55.4% compared with 56.7% in 1H15, with the group's cost management initiatives continuing to show results. However, the group's net interest margins were slightly lower at 2.63% driven mainly by the higher cost of deposits in Malaysia.

The group's common equity tier 1 ratio (CET 1) ratio strengthened to 10.7% in 1HFY16, while its annualised return on equity came in at 8.1%.

At 2.47pm, CIMB shares were up 2 sen or 0.43% to RM4.72, for a market capitalisation of RM41.29 billion.

 

 

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