KUALA LUMPUR (Oct 28): PT Bank CIMB Niaga Tbk, the 91.45%-owned Indonesian subsidiary of CIMB Group Holdings Bhd (KL:CIMB), reported a 14.7% year-on-year decline in net profit for the nine months ended Sept 30, 2026 (9MFY2026), weighed down by narrower lending margins and higher provisions for potential loan losses.
The bank posted a net profit attributable to shareholders of IDR4.49 trillion (about RM1.01 billion), down from IDR5.27 trillion a year earlier, according to its unaudited financial statements.
Profit before tax fell to IDR5.78 trillion from IDR6.74 trillion while earnings per share declined to IDR178.65 from IDR209.57.
Net interest income fell 2.2% to IDR9.86 trillion from IDR10.08 trillion while provisions for potential losses on financial assets rose to IDR2.37 trillion from IDR1.26 trillion.
CIMB Niaga president director and CEO Lani Darmawan said the bank maintained stable operating performance, supported by continued business growth and disciplined cost management.
"While profitability was affected by margin compression and higher provisioning as part of our prudent approach to credit risk management, we continued to maintain a sound balance sheet," she said in a statement.
Lani said the bank's capital and liquidity positions remained strong, with a capital adequacy ratio of 23.7%, providing a solid foundation for future growth.
"Our priorities include strengthening asset quality, pursuing selective loan growth, optimising our funding mix and growing recurring fee income, supported by continued cost discipline," she added.
Total loans grew 6.7% year-on-year to IDR242.6 trillion, led by corporate banking, which recorded a 15.1% increase.
Total deposits stood at IDR273.7 trillion, with current and savings account (Casa) balances rising 4.4% to IDR197 trillion, bringing the Casa ratio to 72%.
The results come after CIMB Group last week denied reports that it was planning to privatise CIMB Niaga, saying no decision had been made and no formal proposal was under consideration.
CIMB is required to reduce its stake in the Indonesian lender to 87.5% by March 2027 and 85% by March 2028 to comply with the country's revised minimum public shareholding requirements.
At Wednesday's market close, CIMB Niaga shares rose 0.98% to IDR1,540, valuing the Indonesian lender at approximately IDR38.7 trillion.
Meanwhile, over at Bursa Malaysia, CIMB shares closed unchanged at RM7.11, valuing the group at RM76.9 billion.