This is 10.5% above its 3Q10 net profit of RM916 million.
In a release, CIMB Group Holdings Berhad reported a record net profit of RM2.898
billion for 9 Months FY11 (“9MFY11”), representing a 9.6% year-on-year (“Y-o-Y”) growth and
equivalent to net earnings per share (“EPS”) of 39.0 sen. The annualised net return on equity
(“ROE”) was 16.0%. For 3Q11, the Group’s net profit of RM1.012 billion was 4.3% higher than
2Q11, and 10.5% above its 3Q10 net profit of RM916 million.
"We posted another record quarter in net earnings in 3Q11, underpinned by the continued
improvement at our Malaysian consumer banking operations and rebound in treasury and
investments. We remain behind our full year targets, but given the deteriorating environment
and our cautious stance, we are pleased with these results,” said Dato’ Sri Nazir Razak, Group
Chief Executive, CIMB Group.
CIMB Group Y-o-Y Results
CIMB Group’s 9MFY11 revenues were 0.6% higher Y-o-Y at RM8.74 billion. The growth in
net interest income was largely offset by lower non-interest income as last year’s non-interest
revenues were boosted by sales of ex-Lippo Bank bonds (excluding this, total revenues would
have increased 4.4%). The Group’s profit before tax (“PBT”) was 8.5% higher at RM3.80 billion
bolstered by much lower credit losses and low overhead cost increase.
For 9MFY11, the Group’s Malaysian consumer bank PBT increased by 79.3% Y-o-Y to RM1.06
billion from the combination of 9.5% Y-o-Y improvement in revenue and lower credit charges.
PBT at Corporate & Investment Banking (“CIB”) was 9.9% lower Y-o-Y at RM657 million, while
Treasury & Investments declined 8.4% Y-o-Y to RM802 million.
CIMB Niaga’s PBT rose 36.1% to IDR3,276 billion but its contribution to the Group was 3.2%
lower Y-o-Y at RM1.14 billion due to the absence of gains arising from the sale of ex-Lippo
Bank bonds which occurred in 9MFY10. CIMB Thai’s PBT contribution (after GAAP and
FRS139 adjustments) was unchanged at RM61 million. Asset Management and Insurance PBT
rose 21.0% Y-o-Y to RM75 million.
CIMB Niaga was the largest contributor to Group PBT at 30% compared to 34% in 9MFY10.
The Malaysian Consumer Bank’s contribution to Group PBT was significantly higher at 28%
versus 17% in 9MFY10. Treasury and Investments contributed 21%, CIB 17%, Group Asset
Management (“GAM”) and Insurance 2%, while CIMB Thai’s contribution was 2%.
Total non-Malaysian PBT declined to 38% in 9MFY11 from 47% in 9MFY10 due to absence of
the ex-Lippo Bank bond gains at CIMB Niaga.
The Group’s total gross loans expanded 15.3% Y-o-Y, underpinned by the strong 33.4%
growth (in RM terms) at CIMB Niaga as well as the 12.6% increase in Malaysian consumer
loans. Mortgages, credit cards and the Group’s micro credit lending grew by 16.1%, 13.6% and
81.4% respectively Y-o-Y. Hire purchase loans grew at a modest 1.1% Y-o-Y while commercial
banking loans were unchanged. Corporate loans expanded 3.5% Y-o-Y. The Group's overall net
interest margins eased to 3.12% from 3.39% last year.
Total Group deposits grew by 12.3% Y-o-Y underpinned by a 25.8% expansion in CIMB Bank’s
retail deposits. CIMB Niaga’s deposit drive brought about a 23.7% Y-o-Y (in RM terms) growth
while CIMB Thai’s deposits grew by 15.3% (in RM terms).
The total loan impairment for the Group declined by 55.0% Y-o-Y at RM198 million in 9MFY11
versus RM440 million in 9MFY10. As a result, the Group’s total annualised credit charge was
0.14% compared to the 0.40% full year target. The Group’s gross impairment ratio continued
to improve to 5.5% for 9MFY11 from 5.7% as at end-1H11 and 6.6% as at 9MFY10, with an
impairment allowance coverage of 80.0%. The Group’s cost to income ratio rose to 56.1%
compared to 54.1% in 9MFY10.
CIMB Bank’s risk weighted capital ratio stood at 16.7% while its Tier 1 capital ratio stood at
14.5% as at 30 September 2011 (after inclusion of 9MFY11 net profits). CIMB Group’s double
leverage and gearing stood at 119.2% and 21.4% respectively as at end-September 2011.
Do you know more about this story? Contact us anonymously through this link.