KUALA LUMPUR (July 30): PT CIMB Niaga Tbk, CIMB Group Holdings Bhd's 92.5% indirectly-held unit, reported a net profit of IDR1.74 trillion (RM509.02 million) for its first half of 2020 (1H20), down 11.74% from IDR1.98 trillion in the previous year (1H19).

This translated into lower earnings per share of IDR69.99 for 1H20 against 1H19’s IDR79.27, according to a statement issued by CIMB Niaga that CIMB filed with the stock exchange today, in which CIMB Niaga president director Tigor M Siahaan noted that many businesses were faced with different challenges as a result of the COVID-19 pandemic.

However, CIMB Niaga said its capital adequacy ratio (CAR) remains at a strong 19.97%, with total assets of IDR274.4 trillion as at June 30 — which keeps CIMB Niaga as the second largest privately-held bank by assets in Indonesia.

Total deposits stood at IDR203.7 trillion, with a CASA ratio of 61%, as both current account and savings account grew by 17.8% y-o-y and 15.5% y-o-y respectively. Total loans stood at IDR186.1 trillion, contributed mainly by growth in the consumer banking segment.

“We grew mortgages by 9.2% y-o-y while auto loans rose by 4.7% y-o-y,” said Tigor.

"We continue to push the boundaries in digital engagement with our customers, offering some of the most sophisticated user interface and comprehensive transaction capabilities. We have rebranded our internet banking platform — 'CIMB Clicks' is now 'OCTO Clicks'. With the latest digital breakthroughs, we are able to offer customers a more holistic and convenient digital banking experience, catering to our customers’ increasing preference to transact with us digitally," he added.

As for its Syariah banking segment, CIMB Niaga said its Islamic Business Unit (CIMB Niaga Syariah) maintained its position as the largest Islamic Business Unit in Indonesia, with total financing of IDR33.9 trillion (up 21.4% y-o-y) and deposits at IDR32.2 trillion (up 18.6% y-o-y).

Meanwhile, CIMB Niaga said it has continued to develop digital-based products to complement the offerings at existing branches. About 94.8% of total customer transactions were made through digital banking channels such as OCTO Mobile, OCTO Clicks, Automated Teller Machines (ATMs) and Rekening Ponsel (mobile wallet) as at June 30.

CIMB shares slipped 0.28% or one sen to close at RM3.59 today, giving it a market capitalisation of RM35.62 billion. Some 13.72 million shares were done.