KUALA LUMPUR (Nov 18): CIMB Group Holdings Bhd’s net profit fell 7% year-on-year (y-o-y) to RM1.062 billion in the third quarter ended Sept 30, 2013, from RM1.143 billion a year ago.

Revenue also fell 2% y-o-y to RM3.485 billion from RM3.544 billion.

In a statement to Bursa Malaysia, the banking and financial group said cumulatively the group recorded a net profit of RM3.502 billion versus RM3.263 billion a year earlier, while revenue posted was RM10.874 billion from RM10.125 billion a year ago.

Reviewing its results, CIMB said the group’s 3Q13 revenue of RM3.485 billion were 1.2% higher than 2Q13, translating to a 0.8% Q-o-Q net profit growth to RM1.062 billion.

Net interest income was 1.6% higher while non-interest income was 0.2% higher Q-o-Q. Overheads rose by 0.8% while loan provisions increased 181.7%.

The group’s consumer banking profit before tax (PBT) was 7.2% lower quarter on quarter. The MS consumer bank PBT declined 10.6% Q-o-Q, wholesale banking PBT was 3.1% lower Q-o-Q largely due to the weaker investment banking.

But treasury & markets PBT improved 23.9% Q-o-Q while corporate Banking was 2.9% lower. PBT from investments were 94.3% higher Q-o-Q as the group recognized most of its gains from the listing of Tune Insurance Holdings Berhad.

On its nine-month performance, CIMB said its 9M FY13 profit would be lower after excluding the one-off gain and RM200 million in restructuring charges.

It said the group’s regional consumer banking profit expanded 16.9% y-o-y to RM1.713 billion, citing its largest contributor as from the Malaysia and Singapore consumer operations.

Its corporate banking profit also improved 7.3% to RM1.143 billion in line with good growth in corporate lending in all countries except for Indonesia and lower provisions.

CIMB’s investments profit also rose 66.7% to RM695 million due to the RM515 million gain arising from the sale of the 51% interest in CIMB Aviva.

However, its regional wholesale banking profit declined 14.1% y-o-y to RM2.083 billion due to the 34% y-o-y weaker treasury & markets profit of RM785 million on the back of slower credit markets and treasury flows especially in Indonesia.

Also, CIMB’s investment banking profit declined 9.4% y-o-y due to the absence of mega Malaysian IPOs it enjoyed last year and weaker markets.

From a geographic perspective, non-Malaysian profit decreased to 38% in 9M FY13, from 42% in 9M FY12.

“In 4Q13, we have seen a surge in capital markets transactions and continued positive momentum in all markets except Indonesia,” said CIMB Group CEO Datuk Seri Nazir Razak.

“We have a decent chance of meeting our 16% return on equity target for 2013.”