KUALA LUMPUR, Nov 18 — CIMB Group Holdings Bhd’s pre-tax profit for the third quarter ended September 30, 2013 fell to RM1.39 billion from RM1.49 billion in the same quarter last year.
Revenue decreased to RM3.49 billion from RM3.54 billion previously, it said in a filing to Bursa Malaysia.
In a separate statement today, CIMB attributed the weaker results to the weaker pre-tax investment banking in line with the softer capital markets.
Group Chief Executive Datuk Seri Nazir Razak said despite weak and volatile capital markets and difficult operating operating conditions in Indonesia, the group remained in line with its net return on average equity (ROE) target due to outperformances at its regional consumer banking operations and regional corporate bank.
“Loans and deposits are growing at above market averages in all countries bar Indonesia while exceptional gains have come in as scheduled,” he said in a statement.
On prospects, CIMB said this year it had built on the “CIMB 2.0” changes it implemented last year, which completed its investment banking platform expansion and restructured its cost base for the long term.
“At the same time, we have had to navigate a much tougher operating environment than expected, especially in Indonesia, which accounts for about 30 per cent of our earnings.
“So, we are quite pleased with what we have delivered so far.
“In fourth quarter 2013, we have seen a surge in capital markets transactions and continued positive momentum in all markets except Indonesia.
“We have a decent chance of meeting our 16 per cent ROE target for 2013, and given the expected contraction in CIMB Niaga’s contribution, that would be a very satisfying outcome indeed,” he said. — Bernama
