CIMB Group Q3 net profit up 4.2%

CIMB Group Holdings Bhd posted 4.2% higher net profit for the third quarter ended Sept 30, 2018 of RM1.18 billion, compared with RM1.13 billion for the same quarter in 2017 with contribution from all segments except wholesale banking. This was despite group revenue coming in 6.4% lower at RM4.14 billion, compared with RM4.42 billion.

CIMB Group said the decline in operating in the quarter under review, was attributed to declines in non-interest income and net interest income of 17.0% and 1.6%, respectively.

Consumer Banking profit before tax (PBT) grew 3.9% year-on-year (Y-o-Y) from better cost management. Regional Commercial Banking PBT rose 450.0% Y-o-Y from the reduction in provisions. Wholesale Banking PBT was 41.7% lower Y-o-Y across all wholesale segments given the weaker capital markets. Group Asset Management and Investments (Gami) PBT was 542.9% higher Y-o-Y from improvement in private markets, while Group Funding for the third quarter ended Sept 30, 2018 PBT was flat Y-o-Y.

“As 2018 draws to a close, we remain on track to meet our key T18 targets. However, we remain cautious amidst weaker regional economies and global trade tensions. Against this backdrop, we will continue to control asset quality and cost across all businesses and geographies, while we finalise our next mid-term plan to propel CIMB onto a stronger growth trajectory,” said Group Chief Executive Tengku Datuk Seri Zafrul Aziz.

Net profit for the nine month period was 30.8% higher at RM4.47 billion, compared with RM3.41 billion for the period ended Sept 30, 2017.

Revenue for the period was also higher at RM13.31 billion, compared with RM13.11 billion.