CIMB's 9-month profit hits record RM3.5b

CIMB's 9-month profit hits record RM3.5bKUALA LUMPUR: CIMB Group Holdings Bhd's net profit for the first nine months ended September 30 2013 rose 7.3 per cent to a record RM3.5 billion, on the back of a 7.4 per cent revenue growth of RM10.87 billion.

Its net earnings per share was 46.5 sen while its annualised net return on average equity (ROE) was 16 per cent, which were in line with its full-year target.

However, for the third quarter, CIMB's net profit eased seven per cent to RM1.06 billion from RM1.15 billion a year ago and revenue slid 1.7 per cent to RM3.49 billion from RM3.54 billion previously.

The group attributed the third-quarter results to weaker investment banking contribution, in line with the softer capital markets.

"Despite the weak and volatile capital markets and difficult operating conditions in Indonesia, we remain on track with our ROE target, due to outperformances at our regional consumer banking operations and regional corporate bank.

"Loans and deposits are growing at above market averages in all countries except for Indonesia, while exceptional gains have come in as scheduled," said CIMB group chief executive Datuk Seri Nazir Razak in a statement.

On the outlook for the year, he said the group has built on the "CIMB 2.0" changes, which completed its investment banking platform expansion and restructured its cost base for the long term.

"At the same time, we have had to navigate a much tougher operating environment than expected, especially in Indonesia, which accounts for about 30 per cent of our earnings. So, we are quite pleased with what we have delivered," Nazir said.

During the nine months, the group's pre-tax profit of regional consumer banking expanded 16.9 per cent year-on-year to RM1.7 billion, with Malaysia and Singapore being the largest contributors.

Its regional wholesale banking posted a 14.1 per cent drop in pre-tax profit to RM2.1 billion, largely due to the 34 per cent year-on-year weaker treasury and markets' pre-tax profit of RM785 million, on the back of slower credit markets and treasury flows, especially in Indonesia.

CIMB Group's total gross loans and credit expanded 14.2 per cent (excluding the declining bad bank loan book) and 14.3 per cent, respectively.

Its total deposits grew 11.3 per cent from a year ago, driven by a 13.3 per cent expansion in corporate and treasury deposits and a 14.4 per cent growth in commercial banking deposits.

Its double leverage and gearing stood at 114 per cent and 15.7 per cent, respectively, as at end-September.

This year, CIMB Group started its investment banking operations in Taiwan and is in the process of establishing branches in Laos, Shanghai and Hong Kong.

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md.aquil alam

pgdm 1st sem