CIMB Niaga posts 19.9% increase in net profit

Lani Darmawan

KUALA LUMPUR: CIMB Group Holdings Bhd’s Indonesian arm, PT Bank CIMB Niaga Tbk, posted an unaudited consolidated net profit of 1.2 trillion rupiah (RM361.6mil) in the first quarter of 2022, up 19.9% year-on-year (y-o-y) and translating to an earnings per share of 47.89 rupiah.

In a statement, CIMB Niaga said its capital adequacy ratio and loan-to-deposit ratio were strong at 23.1% and 76.1%, respectively, as at March 31, 2022.

Total assets stood at 307.4 trillion rupiah, with CIMB Niaga remaining in its position as Indonesia’s second-largest privately-owned bank by assets.

Its total deposits stood at 237.3 trillion rupiah with the CASA ratio at 63.6%.

The bank’s total loans stood at 182.7 trillion rupiah, contributed mainly by 12.4% y-o-y growth in the consumer banking segment.

Mortgages grew 9.2% y-o-y, while auto loans rose 48.8% year-on-year.

“We had a strong first quarter, with earnings topping 1.2 trillion rupiah and continued the momentum from a solid performance in 2021. Healthy

growth in operating income, well-managed operating expenses, and lower provisioning drove the performance in 1Q22.

“Our strong results reflect the positive economic recovery and the progress we have made on our strategic priorities,” president director Lani Darmawan said.

“We continued to maintain prudent provisioning with a high focus on asset quality and risk management. With the ongoing economic recovery, we expect sustainable performance in 2022 driven by loan growth, a normalisation of net interest margins (NIM) in subsequent quarters as well as heightened discipline in cost management.

“Going forward, we will continue to build and leverage our digital capabilities to enhance customer experience and drive long-term business growth,” she added.