CIMB Group turns in higher profit for 2018 first half

CIMB Group turns in higher profit for 2018 first half

KUALA LUMPUR,. CIMB Group Holdings Bhd posted a higher net profit of RM3.35 billion in the first half ended June 30, 2018 (H1 2018) compared with RM2.35 billion recorded in the same period last year.

The higher profit was bolstered by a gain from the sale of 20 per cent of CIMB-Principal Asset Management (CPAM) and 10 per cent of CIMB-Principal Islamic Asset Management (CPIAM) amounting to RM928 million.

Revenue rose to RM9.17 billion compared to RM8.69 billion previously.

“Consumer banking chalked up a stellar performance, posting a 34.7 per cent year-on-year increase in profit before tax (PBT) while Commercial Banking’s PBT rose by 19.9 per cent.

“The weaker markets in Malaysia, however, contributed to a lower PBT for wholesale banking,” Group Chief Executive Officer Tengku Datuk Seri Zafrul Aziz said in a statement today.

He said the group was relatively cautious on 2018 growth prospects in view of rising global trade tensions and market uncertainties.

Nevertheless, it remains focused on achieving its Target 18 (T18) initiatives, subject to the recovery of the capital market and continued improvement in asset quality across Indonesia, Thailand and Singapore.

“CIMB Malaysia is expected to track the domestic economy and investment climate. CIMB Singapore’s prospects will be driven by regional economic conditions, while CIMB Thai and CIMB Niaga’s business recalibration initiatives are progressing well,” Tengku Zafrul said.

He added the group was finalising its next mid-term growth plan which would be strongly premised on customers, people and sustainability.

CIMB has already begun embedding sustainability principles into its operations groupwide, and this is complemented by its founding membership of the United Nations’ (UN) Environment Programme Finance Initiative Principles for Responsible Banking (UNEP-FI).

The group’s H1 2018 net earnings per share stood at 25.4 sen, while the annualised return on equity was 9.7 per cent.

It declared a first interim net dividend of 13 sen per share to be paid via cash or an optional Dividend Reinvestment Scheme.

The total interim dividend amounts to a payment of approximately RM1.22 billion, translating to a dividend payout ratio of 51.6 per cent of net profit in H1 2018.

— Bernama

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