KUALA LUMPUR, May 31 — CIMB Group Holdings Bhd’s net profit surged to RM2.46 billion in the first quarter ended March 31, 2021, from RM507.93 million a year earlier mainly due to a one-off revaluation gain of RM1.16 billion.
The financial services group said the revaluation gain was from the deconsolidation of TNG Digital, a business jointly founded by CIMB’s wholly-owned subsidiary Touch ‘n Go (TNG) and Ant Group.
“This is the result of a successfully sourced third-party investment in TNG Digital, which operates the Touch ‘n Go eWallet, Malaysia’s largest e-wallet company,” it said in a filing with Bursa Malaysia today.
Revenue for the quarter under review also improved to RM5.96 billion from RM4.14 billion in the previous year’s corresponding period.
Loan growth remained muted due to a combination of the soft economic environment and shift in the group’s portfolio mix, with gross loans growing marginally by 0.7 per cent, CIMB said.
However, deposits increased by 3.3 per cent and current account savings account (CASA) continued to grow strongly with a 19.8 per cent year-on-year (y-o-y) growth, with CASA ratio strengthening to 42.3 per cent as at March 2021 from 41.3 per cent as at December 2020.
“The group remains well-capitalised as its common equity Tier 1 ratio stood at 12.9 per cent as at March 2021 from 13.3 per cent as at December 2020 due to risk-weighted assets optimisation initiatives,” it said.
CIMB Group’s total deposits grew by 3.3 per cent to RM412.2 billion and the group’s loan-to-deposit ratio stood at 88.9 per cent as at March 2021, a marginal decrease from 89.0 per cent in the preceding quarter.
Total provisions decreased by 33.0 per cent y-o-y to RM756 million, mainly due to recoveries in legacy accounts in Singapore and the absence of large impairments. Of this, loan impairments accounted for RM716 million, a 26 per cent decrease y-o-y. — Bernama
