CIMB predicts that its business in Indonesia will surpass that from its home base of Malaysia in profit before tax in three years.
“By 2015, Malaysia will be just under 40 percent, Indonesia will be just over 40 percent, that’s my expectation today,” said CIMB Group chief executive Nazir Razak.
The Malaysian bank’s operation in Indonesia has been boosted by its subsidiary Bank CIMB Niaga, which in the first quarter contributed 32 percent to CIMB Group’s total profit before tax, or equivalent to RM 431 million or $135 million.
The lender’s operation in Malaysia contributed 57 percent during the same January-March period and other countries 11 percent. CIMB Group’s net income before tax was RM 1.34 billion in the first quarter. A diverged earning sources was part of the bank’s aspiration to tap into the fast growing development in the region.
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