CIMB Niaga president director Lani Darmawan
KUALA LUMPUR: CIMB Group
Holdings Bhd 's 92.5% indirectly held Indonesian subsidiary PT Bank CIMB Niaga Tbk (CIMB Niaga) reported a 29.5% year-on-year (YoY) jump in pre-tax profit to 2.0 trillion rupiah (about RM607mil) in the first quarter, translating to earnings per share of 63.42 rupiah.
“We have begun 2023 by delivering another strong quarter with good performance for all business segments, on the back of solid loan growth and improved underlying asset quality indicators,” president director Lani Darmawan said in a statement.
“Gross non-performing loans (NPL) declined to 2.6% from 3.6% in 1Q22 and 2.8% in 4Q22, and these results allow us to accelerate value creation for our stakeholders and reinforce our confidence in a positive outlook for the rest of 2023,” said.
Lani said its performance reflects Indonesia’s robust economic recovery and significant progress in the execution of its 5-pillar strategy with a key focus on achieving sustainable profitable growth.
“We will continue building and leveraging our digital capabilities to enhance customer experience and drive long-term goals,” she added.
CIMB Niaga’s key profitability indicator, return on equity (ROE), improved to 15.1%. The bank maintained a solid capital and liquidity position with capital adequacy ratio (CAR) and loan-to-deposit ratio (LDR) of 21.3% and 82.2% respectively.
Its total consolidated assets stood at 347.3 trillion rupiah as of March 31 while total deposits reached 240.1 trillion rupiah with CASA (current account saving account) ratio at 61.2%.
Total loans/financing grew 10.1% YoY to 201.1 trillion rupiah (or 199.6 trillion rupiah excluding Salam financing) contributed mainly by growth in corporate banking and consumer banking.
Mortgages grew by 5.5% YoY, while auto loans rose 20.6% Y-o-Y, including contributions from the bank’s subsidiary, PT CIMB Niaga Auto Finance (CNAF).
In Sharia banking, CIMB Niaga's Islamic business unit (CIMB Niaga Syariah) maintained its position as the largest Islamic Business Unit in Indonesia, with total financing valued at 50.2 trillion rupiah (including Salam financing) and deposits of 49.3 trillion rupiah as at March 31.
“In CIMB Niaga, we also focus on customer centricity, which we do by continuing to provide unique and different values as well as a positive experience to customers when performing banking transactions with CIMB Niaga," Lani said.
To support its business growth, CIMB Niaga continues to improve customer experience by offering a comprehensive suite of products and services through its 414 branches and networks (including 37 digital lounges).
As of March 31, the bank’s nationwide network operated 4,066 ATMs (including cash remittance machines and multidenom deposit machines) and 431,556 electronic data capture terminals.
