CIMB Q1 net profit up 9.4%

CIMB Group Holdings Bhd's net profit for first quarter was 9.4% higher year-on-year at RM917million.

This was achieved despite a 1.3% decrease in revenue to RM2.75bil for the quarter under review. The annualised net return on equity for the quarter was 15.7%.

CIMB group chief executive Datuk Seri Nazir Razak in a statement said the group had a good start to 2011 on the back of strong showing by its Malaysian consumer banking operations and continued high growth at CIMB Niaga.

The group's Malaysian consumer bank pre-tax profix increased by 83.4% year-on-year to RM343mil as a 12.6% improvement in revenues was accompanied by a write-back in provisions.

Pre-tax profit at corporate and investment banking rose 13.6% year-on-year to RM243mil, while treasury and investments declined 13.1% to RM253mil.

The pre-tax profit at CIMB Niaga, the group Indonesia subsidiary, was up 39.2% to 980 billion rupiahs but its contribution to the group fell 20.6% to RM336mil due to the absence of gains arising from the sale of available for sale bonds which occurred in the first quarter of last year.

Meanwhile, CIMB Thai's pre-tax profit contribution surged to RM37mil from RM6mil last year.

The Malaysian consumer bank and CIMB Niaga were jointly the largest contributors to group pre-tax profit at 27%.

On its strength, the group's total gross loans expanded 13.8% year-on-year, underpinned by the Malaysian consumer loans which grew 14.6% as well as a strong 27.5% expansion in CIMB Niaga's gross loans.