KUALA LUMPUR: PT Bank CIMB Niaga Tbk’s net profit rose by 11.2% in the first half ended June 30, 2021 (1H, FY21) to 2.1 trillion rupiah (RM614mil) due to higher operating income while operating expenses were generally flat.
The bank, which is a 92.5% indirectly held subsidiary of CIMB Group Holdings Bhd, said on Friday the unaudited consolidated net profit of 2.1 trillion rupiah translated to earnings per share of 85.54 rupiah.
President director of CIMB Niaga, Tigor M. Siahaan said the bank’s return on equity rose by 11.2% in tandem with the increase in net profit.
Its operating income rose by 8.7% Y-o-Y while operating expenses were generally flat, resulting in an improvement in CIMB Niaga’s cost to income ratio to 45.1%. Loan loss provision inched higher by 5.1%.
“Despite the encouraging 1H21 results, we remain cautiously optimistic in light of the resurgence of Covid-19 outbreak. We remain focused on growing the bank’s business with the execution of our five-pillar strategy whereby we engage our customers with our best banking services, supported by digital transformation and data analytics,” Tigor said.
CIMB Niaga’s capital adequacy ratio (CAR) and loan to deposit ratio (LDR) were strong at 22.1% and 78.4% respectively as at June 30, 2021.
The bank had total assets of 288.9 trillion rupiah as at June 30, 2021 as it maintained its position as Indonesia's second largest privately owned bank by assets.
CIMB Niaga’s total deposits stood at 218.1 trillion rupiah with the current account savings account (CASA) ratio at 62.4%.
Current account grew by 8.2% on-year and savings account expanded 10.5% Y-o-Y respectively, driven largely by the bank’s continuous commitment to digital enhancement and customer experience.
As Indonesia's leading digital bank, Tigor said Bank Niaga continues to innovate and improve its OCTO Mobile capabilities by evolving it into a Super App.
“The app enables users to enjoy our banking services, securely and safely, especially during the current restrictions on social activities period,” he said, adding that its customers could conduct many banking activities such as savings, transactions, investments, and loans at the convenience of their own homes.
CIMB Niaga’s total loans were 173.4 trillion rupiah contributed mainly from the 5% Y-o-Y growth in the consumer banking segment. Mortgages grew by 7.3% Y-o-Y, while auto loans rose by 12.6% Y-o-Y.
Tigor pointed the bank recently launched two sustainable financing initiatives which were sustainability linked-loan/financing and sustainable financing.
“The new financing initiatives have placed CIMB Niaga at the forefront of the country's banking industry and as one of the pioneers in the banking industry to offer products that are socially and ecologically sustainable with positive contributions to the environment,” Tigor added.
In the Shariah banking segment, CIMB Niaga's Islamic business unit maintained its position as the largest Islamic business unit in Indonesia, with total financing valued at 33.1 trillion rupiah and deposits at 37.1 trillion rupiah as at June 30, 2021.