CIMB Niaga reports 877b rupiah net profit in 1Q18

PETALING JAYA CIMB Bank Bhd's Indonesian unit PT Bank CIMB Niaga Tbk reported an unaudited consolidated net profit of 877 billion rupiah (RM247 million) in the first quarter of 2018 (1Q18), representing a 37.0% year-on-year (Y-o-Y) growth and translating to an earnings per share of 34.98 rupiah.
The improved net profit came on the back of a 38.5% increase in non-interest income (NoII) to 992 billion rupiah and a 21.2% Y-o-Y decline in provision expenses.
CIMB Niaga president director Tigor M. Siahaan said it posted a positive performance in 1Q18 in line with the gradual improvements in macro economic conditions.
"Our operating income of 4.0 trillion rupiah increased 5.6% Y-o-Y while our costs were 4.4% higher Y-o-Y at 2.0 trillion rupiah. Our progressive improvement in asset quality management brought about a 21.2% Y-o-Y reduction in provisions,” Tigor said in a statement.
With total assets of 257.5 trillion rupiah as at March 31, 2018, representing a 8.7% Y-o-Y growth, CIMB Niaga maintained its position as Indonesia's second largest national private-listed bank by assets.
Total gross loans increased 1.8% Y-o-Y to 179.1 trillion rupiah as at March 31, 2018. Wholesale banking comprised the largest proportion of the loan book.
“Our strategy to focus on the mortgage and small medium enterprise (SME) segments is gaining traction, with each segment growing by 9.9% and 5.3% Y-o-Y respectively, while our corporate and commercial loans grew by 7.3% and 4.9% Y-o-Y respectively,” Tigor added.
Going forward, he said it will continue to focus on cross selling activities to drive fee income, optimise current & savings account with its consumer and SME digitalisation, and strengthen its syariah business proposition and syariah-compliant product offerings.