Higher profit, revenue in Q3 for CIMB Group


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Written by Syndicated News

KUALA LUMPUR — November 16, 2016: CIMB Group Holdings has reported a higher pre-tax profit of RM1.36 billion for the third quarter ended last September 30 compared with RM1.07 billion a year ago.

Revenue jumped to RM4.12 billion versus RM3.84 billion previously.

In a statement, it said consumer banking’s pre-tax profit (PBT) grew 27.2 per cent driven by loans growth and lower provisions but commercial banking’s PBT declined 54.8 per cent on higher provisions.

For the cumulative nine months, pre-tax profit stood at RM3.67 billion compared with RM2.78 billion for the same period last year.

Revenue rose to RM11.75 billion compared with RM11.35 billion.

The 6.9 per cent improvement in PBT was underpinned by a 104 per cent year-on-year (YoY) improvement in Indonesia, continued cost controls and a RM150 million gain from the sale of PT Sun Life.

Consumer banking’s PBT increased by 33 per cent YoY from regional loan growth and non-interest income growth coupled with lower overhead costs and provisions.

Malaysian loans expanded 8.2 per cent YoY in the nine months of 2016 while the group’s loan growth was 2.4 per cent YoY.

Group Chief Executive Tengku Datuk Seri Zafrul Aziz said the group’s target 2018 or T18 Strategy has laid the right foundations in terms of capital, cost, culture, customercentricity and compliance to enable it to move forward with better clarity.

On commercial banking, the group would sustain the momentum in Malaysia and Indonesia whilst focusing on asset quality in Thailand.

“We expect better loans growth in corporate banking and, subject to market conditions, steady improvement in the capital markets business.

“As we approach the halfway mark of our T18 Strategy, we will fine-tune our programmes where necessary, to ensure a sustainable growth trajectory across all businesses within the group,” said Zafrul.

The group is also excited about Vietnam, where it has been granted a full banking licence and will begin operations next month. — Bernama



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