CIMB Niaga Indonesia first-half earnings 28% higher year on year

PT Bank CIMB Niaga Tbk (CIMB Niaga) posted a net profit of 1.8 trillion rupiah (RM504.3 million) in the first half of 2018 (1H18), representing a 28.1% year-on-year (y-o-y) growth, which translates into an earnings per share of 70.54 rupiah.

The improved net profit came on the back of a 32.6% increase in non-interest income to 1.9 trillion rupiah and a 27.1% y-o-y decline in provision expenses, it told the stock exchange yesterday.

Its loan loss coverage (LLC) remained comfortable at 106.83%, it added.

CIMB Niaga president Tigor M. Siahaan said its 1H18 operating income managed to grow by 1.5% y-o-y thanks to the y-o-y improvement in non-interest income.

Tigor added its operating costs continued to be well managed, rising only 3.4% y-o-y, while the gradual improvement in the economic environment positively impacted its provisions which declined 27.1% y-o-y.

“We will continue the cautious growth trajectory with asset quality as a priority. With total assets of 260.1 trillion rupiah as at June 30, 2018, representing a 7.6% y-o-y growth, CIMB Niaga maintained its position as Indonesia’s second largest national private-listed bank by assets.”

As at June 30, CIMB Niaga’s total gross loans increased 3% y-o-y to 185.7 trillion rupiah.

“Our strategy to focus on the mortgage and small medium enterprise (SME) segments is gaining traction, with each segment growing by 8.9% and 6.2% y-o-y respectively, while our corporate loans grew by 8.8% y-o-y,” Tigor added.

Its total third party deposits stood at 190.3 trillion rupiah as at June 30 2018, underpinned by a 12.8% y-o-y growth in CASA (current account, savings account).

“Going forward, we will continue to optimise CASA with our consumer and SME digitalisation, and strengthen our Sharia business proposition and Sharia-compliant product offerings,” Tigor said.