CIMB posts record quarterly earnings of RM1.18b

CIMB Group Holdings Bhd group chief executive Tengku Datuk Seri Zafrul Aziz: "We continue to face difficult markets".

KUALA LUMPUR: CIMB Group Holdings Bhd posted its highest quarterly earnings at RM1.18bil in tandem with the gradually improving regional economic conditions and capital market activity.

It said on Wednesday its earnings rose 45% from RM813m a year ago while its revenue increased 17% to RM4.36bil from RM3.725bil. Earnings per share were 13.31 sen.

“In the first quarter of 2017, our top line grew to RM4.36bil, largely driven by a 32.3% growth in non-interest income in line with improved capital market activity,” said CIMB Group

CIMB Group  said profit before tax was RM1.61bil in Q1 FY17. On a year-on-year basis, operating income expanded 17.1%, which was a 30.0% on-year improvement in pre-provisioning operating profit.

Tengku Datuk Seri Zafrul Aziz, the group chief executive of CIMB Group said: “We had a good start to 2017, recording our highest ever quarterly net profit of RM1.18bil in Q1, 17 in tandem with the gradually improving regional economic conditions and capital market activity. 

“Our main business units are gaining traction, with cost management initiatives continuing to show progress and asset quality showing sustained improvement. Better capital and balance sheet management has brought about more focused growth, improved margins, a healthier current account and savings account CASA ratio and a strengthened capital position," he added.

Moving forward, the group indicated it was cautiously optimistic about the outlook for the rest of 2017, with more stable economic conditions, increased regional activity and improving capital markets. 

CIMB Group added that it was on track to achieve its key financial targets for 2017.

It did not declare any dividend for the quarter.