KUALA LUMPUR: PT Bank CIMB Niaga Tbk’s net profit rose by 11.2% in the first half ended June 30, 2021 (H1, 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 the unaudited consolidated net profit of 2.1 trillion rupiah (RM614mil) translated to earnings per share of 85.54 rupiah (2.5 sen).
President director of CIMB Niaga, Tigor M. Siahaan in a statement yesterday 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% year-on-year (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.