CIMB Q3 net profit jumps to RM1.02bil

CIMB Group Holdings Bhd is said to be hiring Rafe Haneef from HSBC Amanah Malaysia Bhd to lead its Islamic banking unit.

PETALING JAYA: CIMB Group Holdings Bhd’s (CIMB Group) net profit for the third quarter of financial year 2016 (3QFY16) was 13.4% higher year-on-year compared to Business-as-Usual (BAU) 3QFY15 net profit, driven by the PT Sun Life gain, higher non-interest income and lower operating costs, partially offset by an uptick in provisions.

Via a press release on Wednesday, CIMB Group announced that its net profit for the first nine months of financial year 2016 (9MFY16) saw a 5.8% growth to RM2.71bil year-on-year (YoY), compared to 9MFY15 BAU net profit. This growth was underpinned by a 104.2% YoY improvement in Indonesia, continued cost controls and a RM150mil gain from sale of PT Sun Life.

The company’s 9MFY16 operating income grew 3.5% YoY to RM11.8bil, compared to 9MFY15 BAU operating income, on the back of a 4.6% improvement in net interest income. Operating expenses remained under control, growing 0.6% YoY although it was 2.5% lower after excluding foreign currency translation effects.

The company added that while the Malaysian loans expanded 8.2% YoY in 9M16 compared to 9M15 BAU, the group’s loan growth was 2.4% YoY. 

“We saw strong 3QFY16 performance in consumer banking for Malaysia, Indonesia and Thailand. Across the Group, consistent efforts in managing cost resulted in an improvement in our cost-to-income ratio to 53.2% in 3QFY16. 

“Our capital position is strengthening and we remain on track to achieve our 11% CET1 target for 2016,” said CIMB Group CEO Tengku Datuk Sri Zafrul Aziz.