PT BANK CIMB NIAGA 1Q20 NET PROFIT RISES 11.8 PCT TO IDR1.1 TLN

KUALA LUMPUR, May 8  -- PT Bank CIMB Niaga Tbk posted an 11.8 per cent increase in unaudited consolidated net profit of Indonesian rupiah IDR1.1 trillion (RM1 = IDR3,445) in the first quarter of 2020 (1Q20) ended March 31, 2020, which translates into earnings per share of IDR42.33.

President director Tigor M. Siahaan said despite the challenging environment due to the COVID-19 pandemic, the bank managed to achieve a double-digit net profit growth for 1Q20, mainly driven by an 11.5 per cent year-on-year (y-o-y) growth in non-interest income and a 2.7 per cent  y-o-y reduction in operating expenses.

“As a result, our cost to income ratio improved and is now below 48 per cent. Our current and savings account (CASA) grew 18.8 per cent y-o-y, contributing to a 6.3 per cent deposits growth.

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“Our loan loss coverage increased to 191.13 per cent, with provision expenses rising by 8.7 per cent y-o-y,” he said in a filing with Bursa Malaysia today.

He said CIMB Niaga’s capital adequacy ratio also remained healthy at 19.39 per cent as at March 31 2020.

With total assets of IDR274.5 trillion as at the end of the quarter, he said CIMB Niaga maintained its position as Indonesia's second largest privately-owned bank by assets.

“Total deposits stood at IDR202.6 trillion with the CASA ratio standing at 60.1 per cent. Savings accounts grew by 20.3 per cent y-o-y, driven largely by the bank’s continuous commitment to digital enhancement and customer experience,” Tigor said.

He said total loans grew by 3.3 per cent y-o-y to IDR194.3 trillion contributed mainly from growth in the consumer banking segment.

“We maintained strong leadership in mortgages which grew by 11.6 per cent, while credit card loans rose by 8.9 per cent y-o-y driven by our expanding merchant acquiring business,” he said.

In the Shariah banking segment, CIMB’s Niaga Syariah maintained its position as the largest Islamic Business Unit in Indonesia, with total financing valued at IDR34.5 trillion and deposits increasing to IDR30.3 trillion for 1Q20.

"Our focus is on improving liquidity and maintaining asset quality and cost discipline. Going into our second year of the Forward 23 transformation initiative, we are now investing and pushing even harder to enhance customer experience, heighten digitalisation and improve productivity.

“We continue to develop our digital channels to support our customers’ needs, particularly during this challenging time," Tigor added.

-- BERNAMA