KUALA LUMPUR: CIMB Group Holdings Bhd reported a 27.3% rise in its third-quarter net profit at RM1.02 billion, compared with the RM803.89 million it achieved a year earlier, lifted largely by its non-interest income as well as a one-off gain from the sale of its stake in PT CIMB Sun Life.
CIMB told Bursa Malaysia yesterday that besides the RM150 million gain from the sale of CIMB’s 51% stake in Sun Life, higher Islamic banking income also supported its net profit in the third quarter ended Sept 30, 2016 (3QFY16).
Its quarterly revenue was up 7.4% to RM4.12 billion, from RM3.84 billion a year earlier, with a 23.8% growth in non-interest income and a 1% rise in net interest income.
Consumer banking profit before tax (PBT) grew 27.2% year-on-year (y-o-y), driven by loan growth and lower provisions, though commercial banking PBT declined 54.8% y-o-y, mainly due to higher provisions. It also saw a 2.6% y-o-y growth in wholesale banking PBT, due to improved capital market business.
Cumulative 9MFY16 net profit increased 33.9% to RM2.71 billion, from RM2.02 billion a year earlier, as revenue climbed 3.5% to RM11.75 billion from RM11.35 billion, underpinned by a 4.6% improvement in net interest income, while non-interest income grew 1%.
Its improvement in its regional consumer bank PBT, which gained 33% y-o-y in 9MFY16 to RM1.71 billion, made up 46% of the group’s PBT. “The improved performance was underpinned by the regional consumer loan growth, lower overhead costs and lower provisions,” it said.
Its regional commercial banking PBT, however, declined 32% y-o-y to RM314 million due to “higher provisions in Thailand, Indonesia and Singapore”, though revenue has continued to grow with falling cost. Its regional wholesale banking PBT, on the other hand, grew 4.8% y-o-y to RM1.34 billion with improvements in treasury markets and investment banking.
Meanwhile, its total gross loans “excluding the bad bank” grew 2.4% y-o-y or 2.2% if FX fluctuations were excluded, while total deposits grew 8.0% y-o-y or 7.9% (excluding FX fluctuations). The group’s loan-to-deposit ratio, meanwhile, stood at 89.8% compared with 94.9% in 9MFY15.
