CIMB Niaga pre-tax profit up 5.8% in 1H24

The bank remains optimistic about the second half of 2024 with its strategies firmly on track.

PETALING JAYA: CIMB Group Holdings Bhd’s 92.5% owned PT Bank CIMB Niaga Tbk has registered a pre-tax profit of 4.4 trillion rupiah, a 5.8% year-on-year growth for the first half of 2024 (1H24).

In a statement released yesterday, its president director Lani Darmawan said the strong performance was achieved on the back of earning assets growth, well-managed operational efficiency, and prudent provisioning.

She said the bank had effectively managed asset quality while maintaining a gross non-performing loan ratio of 2.1%, which is below the industry average.

The bank maintained a solid capital and liquidity position with capital adequacy ratio and loan-to-deposit ratio of 22.7% and 85.7% respectively.

Its total assets as of June 30, 2024 stands at 346.7 trillion rupiah, making it Indonesia’s second largest privately owned bank.

“This performance underscores CIMB Niaga’s steadfast commitment to our five-pillar strategy for sustainable profit growth, focusing on expanding our customer base, strengthening the current account and savings account (CASA) portfolio, improving asset quality, and deepening digital engagement,” she said.

According to her, the bank will remain optimistic about the second half of 2024 with its strategies firmly on track.

“Our dedication to delivering robust financial results aligns with our commitment to providing innovative and accessible financial solutions, supporting our stakeholders’ financial aspirations, while contributing to the overall economic growth,” she said.

Additionally, CIMB Niaga’s total deposits recorded a 6% year-on-year growth to 249.8 trillion rupiah on the back of strong CASA growth of 7.4%, attributable to fostering stronger customer relationships and enhancing the overall customer experience via digital touchpoints.

Its total loans had also grown 5.9% year-on-year to 217.1 trillion rupiah with the highest growth rate of 10% from the small and medium enterprise segment and 5.8% for consumer banking.

Meanwhile, CIMB Niaga’s Islamic Business Unit held steady as the largest Unit Usaha Syariah in Indonesia, recording a total financing value of 58.1 trillion rupiah and total deposits of 48.1 trillion rupiah.

“The significant financing growth was mostly contributed by the retail segment. CIMB Niaga Syariah remains focused on growing funding composition especially focusing on low cost funding by continuing to develop its community network,” Lani noted.

On its network expansion, Lani said the bank will continue driving digital innovations in addition to its brick-and-mortar offerings.

The bank currently has 403 branches and networks, including 35 digital lounges.

Lani also said the bank will continue supporting decarbonisation targets, particularly for the six high-emitting sectors, namely coal, cement, palm oil, power, real estate, and oil and gas.

“CIMB Niaga is fully committed to supporting our clients and stakeholders in achieving a fair transition to a net-zero future.

“We are proactively recalibrating our strategy, products, and services to support decarbonisation while ensuring sustainable development and positive socioeconomic outcomes.”