Friday 29 Mar 2024
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KUALA LUMPUR (Feb 20): PT Bank CIMB Niaga Tbk (CIMB Niaga) recorded a 16.95% growth in net profit in its full-year ended Dec 31, 2018 (FY18) to 3.48 trillion rupiah (RM1.01 billion) from 2.98 trillion rupiah previously, on the back of healthy improvement in non-interest income and credit charges.

Earnings per share for the 92.5%-owned Indonesian banking arm of CIMB Group Holdings Bhd grew to 139.67 rupiah in the year under review against 118.5 rupiah in FY17.

The improved net profit, said CIMB Niaga president director Tigor M Siahaan, came on the back of a 13.8% increase in non-interest income to 3.8 trillion rupiah.

Also supporting the higher profit was a 63 basis points (bps) improvement in credit charges from 2.26% to 1.63%, thanks to a 25.7% decline in provisions on a year-on-year (y-o-y) basis, he said.

CIMB Niaga’s loan loss coverage remains comfortable at 105.86%, he added. “We aim to maintain a targeted growth trajectory while keeping asset quality as a priority.”

Total assets grew a marginal 0.18% to 266.78 trillion rupiah from 266.31 trillion rupiah previously as the banking group maintained its position as the second largest private bank by assets.

“Total loans grew by 1.8% y-o-y to 188.5 trillion rupiah mainly from growth in mortgages of 11.2% to 30 trillion rupiah, small and medium enterprise (SME) loans of 8.5% to 29.6 trillion rupiah and credit card of 5.5% to 8.6 trillion rupiah, according to the banking group’s announcement.

Meanwhile, total third-party deposits stood at 190.8 trillion rupiah with current account-savings account (CASA) ratio at 52.61%. Saving accounts grew 8.5% on-year as its digital enhancement gains traction.

“CIMB Niaga continues to develop digital-based products to complement the offerings at existing branch offices,” it said.

“As at Dec 31, 2018, 94% of the total transactions by customers were made through digital banking channels such as CIMB Clicks, Go Mobile, ATMs and Rekening Ponsel (mobile wallet),” it added.

Additionally, CIMB Niaga saw total financing under its Islamic business unit grow 58.8% on-year to 26.5 trillion rupiah, with third-party deposits growing 19.1% on-year to 23.7 trillion rupiah.

As at Dec 31, 2018, CIMB Niaga’s capital adequacy ratio (CAR) has risen 106 bps on-year to 19.66%.

“Going forward, we will continue to focus on expanding our consumer and SME businesses, building our CASA franchise and strengthening our Sharia business proposition and Sharia-compliant product offerings,” Tigor added.

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