KUALA LUMPUR: CIMB Group Holdings Bhd posted a 4.2% increase in net profit for the third quarter ended Sept 30 to RM1.18bil from RM1.13bil in the year-ago quarter due to improved contributions across all segments except wholesale banking.
"Wholesale Banking PBT was 41.7% lower y-o-y across all wholesale segments given the weaker capital markets," the group said in a statement.
Consumer banking pre-tax profit (PBT) grew 3.9% y-o-y from better cost management while regional commercial banking PBT jumped 450% from the reduction in provisions.
PBT for group asset management and investments soared 542.9% y-o-y from improvement in private markets while group funding PBT was marginally higher y-o-y.
Revenue in the quarter under review slipped 6.4% year-on-year to RM4.14bil as non-interest and net interest income declined 17% and 1.6% respectively.
For the nine months to Sept 30, the bank registered a net profit of RM4.47bil, 30.7% higher than in the same period last year, on 6% higher revenue of RM13.31bil.
The group said the net profit for the period was bolstered by a gain from the sale of 20% stake in CIMB-Principal Asset Management and 10% of CIMB-Principal Islamic Asset Management amounting to RM928mil.
On a business-as-usual basis, net profit was RM3.54bil, 3.6% higher over the comparative period, due to lower operating expenses and loan loss provisions.
"“We are pleased to deliver a record PBT of RM5.69bil in 9M18 despite the challenging operating landscape.
"The good 9M18 performance was underpinned by lower provisions and costs, continued improvement from Consumer and Commercial banking, as well as a recovery in Wholesale banking revenue in 3Q18,” said Tengku Zafrul Aziz, group chief executive of CIMB Group.
The group's 9M18 return on average equity rose to 11.6% while its cost-to-income ratio dropped to 48%.
The loan-to-deposit ratio increased to 93.1% compared to 92% as at Sept 30, 2017.
The total capital ratio stood at 16.9% while the Common Equity Tier 1 capital ratio was 12.3%.
Zafrul said the bank remains on track to meet key T18 targets although it remains cautious amid the weaker regional economies and global trade tensions.
"Against this backdrop, we will continue to control asset quality and cost across all businesses and geographies, while we finalise our next mid-term plan to propel CIMB onto a stronger growth trajectory,” he said.