KUALA LUMPUR: CIMB Niaga has posted an operating income of Rp3.4tril, representing a 0.7% on-year growth with a net profit of Rp83bil for its first quarter ended Mar 31, 2015.
In a statement on Wednesday, CIMB Niaga said earnings per share for the period stood at Rp3.29.
It said net interest income improved 10.8% on-year on the back of 9.6% growth in gross loans and steady net interest margins.
However, the growth in operating income was partially offset by a 29.4% on-year decline in non-Interest income, which was impacted by weaker treasury market activity as well as the new bancassurance regulations which came in effect in March 2014.
"The lower on-year net profit came about from higher levels of provisions and an 8.8% increase in operating expenses, in tandem with the Indonesian inflation rate of 8.4% for 2014," it noted.
Vice President Director D James Rompas said despite the challenging operating envronment, its 1Q15 operating income continued to grow well, as reflected in a higher net interest income of 10.8% on-year.
"Nevertheless, asset quality remains a challenge given the economic conditions, volatile Rupiah and softer commodity prices. In line with our conservative standards of provisioning, we continue to increase recognition of impaired loans and have improved our loan loss coverage ratio from 98.8% in March 2014 to 102.6% in March 2015," he said.
CIMB Niaga?s gross loans expanded 9.6% on-year to Rp176.5tril as at March 31, 2015.
Corporate loans grew by 16.3% on-year to Rp55.5tril, Micro Small Medium Enterprise (MSME) loans recorded a 10.9% on-year growth to Rp35.3tril, while Consumer loans grew by 6.6% on-year to Rp50.5tril.
Commercial loans posted a 3.3% on-year growth to Rp35.1tril.
Within the loan book, it said personal loans expanded the strongest, growing 33.2% on-year to Rp2.3tril, while credit cards loans increased 32.0% on-year to Rp5.4tril.
The number of cards increased to 1.8 million or 11.2% on-year. Within MSME loans, Micro Finance posted a 30.2% on-year growth to Rp3.1tril as at March 31, 2015.
CIMB Niaga's third-party deposits grew 12.5% on-year to Rp181.6tril.
Total CASA increased 9.1% on-year to Rp78.9tril, with Current Accounts and Savings Accounts contributing Rp38tril and Rp40.9tril respectively.
For syariah banking, CIMB Niaga's Islamic Business Unit's total financing stood at Rp6.7tril with third-party deposits of Rp7.3tril as at March 31, 2015.
“We expect our performance will improve in the second quarter of the year in line with the stabilization of macroeconomic indicators, and CIMB Niaga will continue stance on adopting a measured and moderate asset growth trajectory while maintaining tighter cost controls and focus on asset quality,” James added.
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