CIMB Niaga posts 1.4 trillion rupiah first-half net profit

PETALING JAYA: PT Bank CIMB Niaga Tbk reported an unaudited consolidated net profit of 1.4 trillion rupiah (RM444.8 million) in the first half of 2017 (1H17), representing an 87.5% year-on-year (y-o-y) growth, which translates into an earnings per share of 54.92 rupiah.

The improved net profit came on the back of an 8.9% y-o-y increase in net interest income (NII) to 6.33 trillion rupiah and a 16.9% y-o-y decline in provision expense.

CIMB Niaga president director Tigor M. Siahaan said while it remains cautious given the economic situation, it is optimistic that its positive performance in 1H17 will provide a strong impetus for further improvement of its results going forward.

“Our operating income grew by 6.3% y-o-y while our costs were well controlled and only rose by 2.3% y-o-y. We will continue to gradually rebalance our balance sheet and implement various capital optimisation initiatives. The asset quality outlook is expected to progressively improve in line with our portfolio rebalancing and improved risk management policies,” Tigor said in a statement.

With total assets of 241.81 trillion rupiah as at June 30, 2017, representing a 1.0% y-o-y increase, CIMB Niaga maintained its position as Indonesia’s fifth largest bank by assets.

It has announced phase II of the CIMB Niaga Sustainable Bond Public Offering in 2017 with a minimum nominal amount offered of 1 trillion rupiah. All the proceeds will be allocated to finance the bank’s loans expansion efforts to support CIMB Niaga’s business growth.