CIMB Group announces ‘good start to 2017’ in first quarter
CIMB Group Holdings has reported a profit before tax (PBT) of 1.61 billion ringgit (about Bt12.9 billion) for the first quarter of 2017.
On a year-on-year basis, the group’s 1Q17 operating income expanded by 17.1 per cent, translating to a 30-per-cent year-on-year improvement in pre-provisioning operating profit (PPOP) and 45-per-cent year-on-year growth in net profit to 1.18 billion ringgit. The 1Q17 net earnings per share stood at 13.3 sen, while the annualised 1Q17 net return on average equity was 10.3 per cent.
“We had a good start to 2017, recording our highest ever quarterly net profit of 1.18 billion ringgit in 1Q17 in tandem with the gradually improving regional economic conditions and capital-market activity," said Zafrul Aziz, group chief executive of CIMB Group.
“Our main business units are gaining traction, with cost-management initiatives continuing to show progress and asset quality showing sustained improvement. Better capital and balance-sheet management has brought about more focused growth, improved margins, a healthier CASA ratio and a strengthened capital position."
CIMB Group’s 1Q17 operating income grew by 17.1 per cent year on year to 4.36 billion ringgit, largely driven by 32.3-per-cent growth in non-interest income in line with improved capital-market activity. First-quarter net interest income rose by 11.5 per cent from loans growth and improvement in net interest margin.
Operating expenses were 7.4 per cent higher year on year but only 3.9 per cent higher after excluding foreign-currency translation effects, as the group’s cost-management initiatives continued to show progress. The positive jaws ratio brought about the 30-per-cent improvement in the group’s PPOP. The group’s PBT was 43.7 per cent higher at 1.61 billion ringgit, with loan provisions declining 8.8 per cent year on year.
“Looking ahead, the group is cautiously optimistic for the rest of 2017, with more stable economic conditions, increased regional activity, improved capital markets and declining provisions across our key geographies. The group is currently on track to achieve its key financial targets for 2017,” Zafrul said.
