Thursday 20 Jun 2024
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KUALA LUMPUR (April 30): PT CIMB Niaga Tbk, the 92.5%-owned subsidiary of CIMB Group Holdings Bhd, reported a 6.3% year-on-year growth in its consolidated net income for the financial quarter ended March 31, 2024 (1QFY2024). The bank attributed the improved earnings to healthy loan growth, improved asset quality indicators and effective cost management.

In a bourse filing on Tuesday, the group reported that its net income rose to 1.68 trillion rupiah (RM493.2 million) from 1.58 trillion rupiah. Earnings per share increased to 66.96 rupiah from 63.42 rupiah. 

Its interest income climbed 9.1% to 5.84 trillion rupiah in 1QFY2024 from 5.35 trillion rupiah a year earlier. However, it reported a lower net interest income of 3.28 trillion rupiah against 3.41 trillion rupiah due to higher interest expenses.

For the quarter under review, CIMB Niaga reported a return on equity of 14.35%, which is lower than the previous year’s corresponding period’s 15.08%. Its capital adequacy ratio (CAR) stood lower at 24.5% from 21.31%, while its loan-to-deposit ratio (LDR) stood higher at 84.2% from 82.2%.

Its gross non-performing loans (NPL) also declined to 2.1% in 1QFY2024, compared to 2.6% in 1QFY2023.

As at March 31, the bank’s total consolidated assets stood at 333 trillion rupiah, which solidifies its position as Indonesia’s second-largest private bank.

Meanwhile, the bank’s total deposits grew 3.3% year-on-year to 248 trillion rupiah with a current account and savings account (CASA) ratio of 64.6%. The bank noted that CASA grew by 8.9% year-on-year, attributable to stronger customer relationships and better customer experience through digital touchpoints.

Total loans stood at 211.6 trillion rupiah, with the highest year-on-year growth from the small and medium enterprises (SME) at 9.4% and consumer banking at 6.9%.

“Furthermore, nearly 26% of the bank’s total financing [or equivalent to 54.8 trillion rupiah] supports a just transition, a low-carbon economy, the Paris Agreement, and the Sustainable Development Goals [SDGs],” the group said.

In sharia banking, CIMB Niaga's Islamic business unit (CIMB Niaga Syariah) maintained its position as the largest Unit Usaha Syariah (Islamic business unit) in Indonesia, with total financing of 56.2 trillion rupiah and deposits of 50.6 trillion rupiah as at March 31.

Shares in CIMB Group settled unchanged at RM6.61, with a market capitalisation of RM70.57 billion.

Edited ByKathy Fong
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