KUALA LUMPUR: CIMB Group Holdings Bhd’s 97.9 per cent owned subsidiary, PT Bank CIMB Niaga Tbk registered an unaudited consolidated net profit of 736 billion rupiah for the six-month period ended June 30, jumping 318.2 per cent from the same period last year due to higher net interest income and non-interest income.
The bank said its net interest income of 5.81 trillion rupiah and non-interest income of 1.46 trillion rupiah increased 4.8 per cent and 24.1 per cent, respectively, from the same period last year.
President director Tigor M. Siahaan said despite the challenging environment, its top line performance in the first half of this year continued to improve due to better treasury and capital markets businesses.
“We maintained good control over our operating expenses which decreased by 1.2 per cent year-on-year. In addition, the provisions for non-performing loans had gradually improved,” he said in a statement.
Despite the slower overall growth in CIMB Niaga’s loans, its selected business segments recorded encouraging performance.
“The personal and multipurpose loans business grew 9.2 per cent year-on-year through the bank’s X-tra Dana product, while the credit card segment posted a 25.5 per cent year-on-year growth to 7.18 trillion rupiah,” said the fifth largest bank in Indonesia by assets.
As at end June 2016, the bank had issued over 2.1 million credit cards, an increase of 13.4 per cent from a year earlier. To date, CIMB Niaga is the third largest credit card issuer in Indonesia.
Its current account savings account (CASA) grew 5.7 per cent year-on-year to 93.21 trillion rupiah as at June 30, with the CASA ratio rising 457 basis points year-on-year to 51.99 per cent.
The loan to deposit ratio was higher at 96.54 per cent at end-June 2016 compared to 95.81 per cent in the same period last year.
“We will continue to selectively increase our assets with a key focus on cost management and asset quality.
“We started 2016 on a more positive note and seen the potential of gradual improvement in the second half of the year, backed by numerous macroprudential government fiscal and monetary policies to stimulate sustainable economic growth,” added Tigor.