KUALA LUMPUR, Aug 29 — CIMB Group Holdings Bhd (CIMB) announced a net profit of RM1.50 billion in the second quarter 2019, underpinned by among others, loan growth in Malaysia and better treasury and market income.
In a filing to Bursa Malaysia today, CIMB also said, it posted a net profit of RM1.98 billion in the same quarter last year.
For the first half of the year, net profit stood at RM2.70 billion, down from RM3.28 billion previously.
However, minus the one-off gain of RM928 million from the disposal of a 20 per cent stake in CIMB Principal Asset Management, the net profit in the second quarter and the first half of 2018 would be RM1.05 billion and RM2.35 billion respectively, CIMB explained.
Compared with that data, CIMB’s net profit in the second quarter and first half of 2019, was actually higher by 26.6 per cent and 14.5 per cent respectively.
“We are pleased with the 14.5 per cent year-on-year increase in our net profit to RM2.70 billion, underpinned by our above-industry loan growth in Malaysia and better treasury and markets income,” CIMB Group’s Chief Executive Officer, Tengku Datuk Seri Zafrul Aziz said.
Malaysia’s contribution improved, while Indonesia was encouraging, with growth supported by strong consumer business, he said in a statement.
He added that overall, the Group remained resilient, with lower loan loss provisions despite challenging external headwinds.
As for revenue, it was lower at RM4.46 billion for the quarter ended June 30, 2019 versus RM4.86 billion previously, and for the first half of the year, net profit stood at RM2.70 billion, down from RM3.28 billion previously.
The Group’s total gross loans grew by 6.9 per cent year-on-year, while total deposits were 9.9 per cent higher year-on-year.
However, the group’s consumer banking saw a decline in net profit from a combination of lower operating income, higher operating expenses, increased seasonal provisions and Malaysian Financial Reporting Standards 9 (MFRS9) related effects.
Commercial banking’s net profit grew, backed by better net interest income as gross loans grew 4.4 per cent, while provisions were significantly lower.
“Our main focus for the second half of the year will be loan growth, revenue generation and asset quality management. Key financial targets are on track, as our main markets continue to grow, despite the challenging operating environment driven by continued trade tensions,” said Tengku Zafrul.
CIMB will continue to invest in its people and technology, particularly in the next two years, to achieve our Forward23 objectives, he added. — Bernama
