CIMB Group Holdings Bhd reported a Profit Before Tax (\u201cPBT\u201d) of RM1.74 billion for the first quarter of 2018 (\u201c1Q18\u201d) \u2013 representing a 8.0% year-on-year (\u201cY-o-Y\u201d) growth on the back of lower operating expenses of 6.8% Y-o-Y and a 5.4% Y-o-Y decline in loan loss provisions.
Operating income was 1.3% lower Y-o-Y from lower net interest income and the deconsolidation of CIMB Securities International (\u201cCSI\u201d), partially offset by a RM152 million gain arising from the CSI sale.
The Group\u2019s 1Q18 net profit improved 10.7% Y-o-Y to RM1.31 billion, translating into a net Earnings Per Share (\u201cEPS\u201d) of 14.2 sen and an annualised Return On average Equity (\u201cROE\u201d) of 10.2%.<\/p>\n
\u201cWe are pleased to announce a net profit of RM1.31 billion, an increase of 10.7% Y-o-Y, on the back of sustained cost discipline, lower provisions and a RM152 million gain from the disposal of 50% of CIMB Securities International. Commercial Banking\u2019s recalibration is progressing well, while the Wholesale Banking business tracked weaker capital markets in 1Q18. Consumer Banking, however, had a great start, posting a 51.2% Y-o-Y PBT growth,\u201d said Tengku Dato\u2019 Sri Zafrul Aziz, Group CEO, CIMB Group.<\/p>\n
\u201cOur capital position is solid even after adoption of MFRS9, with a CET1 of 11.7%. The cost to income ratio improved to 49.8%, below our 50% year-end target, as operating expenses remained under control across all segments,\u201d continued Tengku Zafrul.<\/p>\n
CIMB Group\u2019s 1Q18 operating income was 1.3% lower Y-o-Y at RM4.30 billion mainly from a 3.5% decline in net interest income. This was offset by a 3.8% Y-o-Y improvement in non-interest income underpinned by a RM152 million gain from the sale of 50% of CSI.
Continued cost management initiatives brought about the 6.8% Y-o-Y decline in operating expenses, resulting in the fourth consecutive quarter of positive JAW. The Group\u2019s PBT was 8.0% Y-o-Y higher at RM1.74 billion, with loan provisions declining 5.4%.<\/p>\n
The Group\u2019s Consumer Bank PBT was 51.2% higher Y-o-Y in 1Q18 at RM848 million, making up 49% of Group PBT. Consumer revenue growth was driven by a robust non-interest income performance, with net interest income growing steadily and costs remaining well managed.
The Commercial Banking PBT declined by 14.1% Y-o-Y in line with the regional business recalibration with the lower revenue partially offset by a decline in costs and provisions.
PBT at the Group\u2019s Wholesale Banking division was RM490 million or 32.6% lower Y-o-Y largely due to the comparatively weaker capital market activity in 1Q18.
Group Asset Management and Investments (\u201cGAMI\u201d) PBT improved 66.7% Y-o-Y from better performances in the asset management and private markets businesses. Group Funding PBT increased 50.7% Y-o-Y from the gain arising from the sale of 50% of CSI.<\/p>\n
\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"
CIMB Group Holdings Bhd reported a Profit Before Tax (\u201cPBT\u201d) of RM1.74 billion for the first quarter of 2018 (\u201c1Q18\u201d) \u2013 representing a 8.0% year-on-year (\u201cY-o-Y\u201d) growth on the back of lower operating expenses of 6.8% Y-o-Y and a 5.4% Y-o-Y decline in loan loss provisions. Operating income was 1.3% lower Y-o-Y from lower net […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[35],"tags":[],"class_list":["post-1790","post","type-post","status-publish","format-standard","hentry","category-corporate"],"_links":{"self":[{"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/posts\/1790","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/comments?post=1790"}],"version-history":[{"count":1,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/posts\/1790\/revisions"}],"predecessor-version":[{"id":6081,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/posts\/1790\/revisions\/6081"}],"wp:attachment":[{"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/media?parent=1790"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/categories?post=1790"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/tags?post=1790"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}