Softer capital markets dampened growth.
CIMB Group reported a net profit of MYR814 million in the first quarter.
The growth was underpinned by an 8.5% improvement in non-interest income, but was partially offset by a 14.5% decline in net interest income. The decline in net interest income was due to weaker capital markets, CIMB said.
The group's loan growth stood at 7.1% year-on-year. Excluding foreign exchange impact, however, loan growth was slower at 5.6%. The drag came primarily from Indonesia, where loans cotracted by 1.7% year-on-year.
"We continue to be cautious on overall balance sheet growth, with a focus on cost management, asset quality, capital management and governance, given the slower regional economies and persistent market volatility," said Tengku Dato’ Sri Zafrul Aziz, Group Chief Executive, CIMB Group.
"We also foresee a gradual improvement at CIMB Niaga through the year. Thailand and Singapore will see selective growth areas, coupled with close monitoring of asset quality,” he added.
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