KUALA LUMPUR: CIMB Group Holdings Bhd’s net profit surged to RM3.41 billion in the nine months ended September 30 2017, from RM2.71 billion a year ago.
The 26 per cent year-on-year (y-o-y) growth was driven by higher operating income and lower provisions, CIMB said in a statement today.
Group revenue rose to RM13.11 billion from RM11.75 billion previously.
“We are continuing to show good progress across the group, recording our highest ever quarterly operating income of RM4.42 billion in the third quarter, and generating a 26.0 per cent y-o-y growth in nine-month net profit,” group chief executive Tengku Datuk Seri Zafrul Aziz said in the statement.
“The improved performance was underpinned by positive net interest margins, gradually declining provisions and healthier capital market activity. In particular, our consumer banking franchise in Malaysia and Thailand, as well as investment and corporate banking activities contributed to the respectable results for the quarter,” he added.
On its outlook, Tengku Zafrul said: “We remain on track to meet our key financial targets for 2017. While the trajectory of regional economies is generally positive and capital market activity is picking up gradually, we maintain our cautiously optimistic outlook and are mindful of keeping tight controls over asset quality and cost across all businesses.”
He added that CIMB had received its full banking licence to operate in the Philippines, which marks the completion of its Asean footprint.
CIMB’s net interest income rose 11.7 per cent in the nine months, thanks to loans growth and improved net interest margin (NIM).
Operating expenses was 6.3 per cent higher y-o-y but only rose 2.9 per cent after excluding foreign currency translation effects, with the group’s sustained cost management efforts.
The group’s pre-tax profit was 24.6 per cent higher at RM4.57 billion, with loan provisions declining 0.3 per cent y-o-y.
On a quarterly basis, CIMB’s net profit edged up to RM1.13 billion from RM1.02 billion a year ago. Revenue went up to RM4.42 billion from RM4.12 billion.