Thanks to the strong growth at CIMB Niaga and CIMB Singapore and outperformance at Corporate Banking and Treasury Markets.
According to CIMB Group's announcement:
CIMB Group Holdings Berhad reported another record half year net profit of RM2.120 billion for the first half of 2012, representing a 12.3% year-on-year growth and equivalent to net earnings per share of 28.5 sen. The annualised 1H12 net return on average equity was 16.0%. The Group declared an interim net dividend of 5 sen per share amounting to a net payment of RM372 million.
"The Group posted another solid performance in 1H12, underpinned by continued strong growth at CIMB Niaga and CIMB Singapore and outperformance at Corporate Banking and Treasury Markets (“CBTM”)" said Dato’ Sri Nazir Razak, Group Chief Executive, CIMB Group. "Overall, our top line grew very well to offset higher operating and credit costs which were anticipated."
CIMB Group Y-o-Y Results
CIMB Group’s 1H12 revenues increased by 15.3% Y-o-Y to RM6.581 billion attributed to sharp improvement in non-interest income coupled with a steady growth in net interest income. The Group’s profit before tax (“PBT”) was 11.9% higher at RM2.811 billion as the revenue improvement was partially offset by increased credit charges and overhead expenses.
For 1H12, the Group’s regional Consumer Bank PBT expanded by 12.4% Y-o-Y to RM1.122 billion. The Malaysia & Singapore consumer operations PBT grew 6.9% Y-o-Y as growth continued to moderate. The consumer operations in Indonesia rose 31.7% Y-o-Y from a combination of higher assets and better margins. The Thai consumer operations lost RM4 million partly due to the retrospective implementation of a new deposit insurance framework.
In 1H12, the Group’s regional Wholesale Banking PBT rose 19.1% Y-o-Y to RM1.418 billion principally driven by the jump in the Markets division PBT to RM717 million as debt capital markets and foreign exchange flows were strong and synergies from the “CIMB 2.0” reorganisation started to show. Investment Banking PBT was 18.1% Y-o-Y lower despite a strong 2Q due to lower M&A income. Corporate Banking PBT fell 16.4% Y-o-Y due to higherprovisions. Investments PBT were lower by 15.6% Y-o-Y at RM271 million due to one-off write- backs in 1H11.
Consumer Banking operations remain the largest contributor to Group PBT at 40% (no change from 1H11). Markets contribution to Group PBT jumped to 25% from 14% in 1H11. Corporate Banking, Investment Banking and Investments contributed 20%, 5% and 10% respectively.
CIMB Niaga’s PBT rose 28.8% Y-o-Y to IDR2,735 billion while its contribution to the Group was 24.8% higher Y-o-Y at RM918 million, accounting for 33% of Group PBT. CIMB Thai’s PBT fell 29.8% to THB395 million and after GAAP and FRS139 adjustments, its contribution to the Group was 33.7% lower at RM32 million, equivalent to 1% of Group PBT. CIMB Singapore’s PBT rose 91.1% to RM108.3 million increasing its share of Group PBT to 4%. Total non-Malaysian PBT increased to 43% in 1H12 from 37% in 1H11.
The Group’s total gross loans expanded 13.1% Y-o-Y. Excluding the declining bad bank loan book, the Group’s total gross loans increased by 14.5% Y-o-Y. Corporate loans saw a large increase of 19.3% while retail loans grew by 9.8%. Within the retail segment, mortgages, term loans, credit cards and the Group’s micro lending grew by 11.5%, 8.6%, 4.3% and 21.3% respectively Y-o-Y. Commercial banking loans were 19.8% higher Y-o-Y while auto loans rose 5.6%.
Total Group deposits grew by 7.3% Y-o-Y driven by an 11.6% expansion in retail deposits and a 14.8% growth in commercial banking deposits. Corporate and Treasury deposits were 0.2% higher Y-o-Y. Geographically, deposit growth was strongest in Thailand at 20.2% from a low base, while Malaysian deposits expanded at 6.2%.
Indonesia and Singapore deposits grew 7.2% and 13.1% respectively Y-o-Y. The Group’s CASA ratio increased slightly to 34.9% from 34.3% last year. The Group's overall net interest margins were only marginally lower at 3.09% from 3.11% last year.
The Group’s total loan impairment of RM195 million in 1H12 was a significant rise from the RM92 million in 1H11, which included substantial write-backs and recoveries. The Group’s total annualised credit charge was 0.20% which is still below the 0.31% full year target. The Group’s gross impairment ratio continued to improve to 4.4% for 1H12 from 5.7% as at 1H11, with an allowance coverage of 82.3%. The Group’s cost to income ratio improved to 55.3% compared to 56.2% in 1H11.
CIMB Bank’s risk weighted capital ratio stood at 15.1% while its Tier 1 capital ratio stood at 13.1% as at 30 June 2012 (after inclusion of 1H12 net profits and proposed dividends). CIMB Group’s double leverage and gearing stood at 118.6% and 21.2% respectively as at end-June 2012.
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