CIMB's profit jumped 7.3% to RM3.5b in 9MFY13

ROE is impressive at 16%.

According to a release, CIMB Group Holdings Berhad (“CIMB Group”) today reported a record net profit of RM3.502 billion for 9 months FY13 (“9MFY13”), representing a 7.3% year-on-year (“Y-o-Y”) growth and equivalent to net earnings per share (“EPS”) of 46.5 sen.

Its annualised net return on average equity (“ROE”) was 16.0% and in-line with its full year target. For third quarter FY13 (“3Q13”), the Group’s net profit of RM1.062 billion was 0.8% higher than 2Q13.

“Despite weak and volatile capital markets and difficult operating conditions in Indonesia, we remain in line with our ROE target due to outperformances at our regional consumer banking operations and regional corporate bank,” said Dato’ Sri Nazir Razak, Group Chief Executive, CIMB Group. “Loans and deposits are growing at above market averages in all countries bar Indonesia, while exceptional gains have come in as scheduled.”

CIMB Group’s 9MFY13 revenue increased by 7.4% Y-o-Y to RM10.875 billion, with a 7.3% growth in net interest income. The 7.6% expansion in non-interest income was inflated by a RM515 million gain from the sale of the 51% interest in CIMB Aviva in 1Q13. Excluding this gain, the Group’s non-interest income would have been 6.7% lower. The Group’s profit before tax (“PBT”) was 4.3% higher at RM4.491 billion, but would be 3.0% lower after excluding the one-off gain and RM200 million in restructuring charges.

For 9MFY13, the Group’s Regional Consumer Bank PBT expanded by 16.9% Y-o-Y to RM1.713 billion. Its largest contributor, the Malaysia and Singapore (“MS”) consumer operations, PBT grew 15.6% Y-o-Y to RM1.34 billion on the back of 7.8% revenue growth and lower operating costs and despite lower provision write-backs. The consumer operations’ PBT in Indonesia expanded by 24.0% Y-o-Y (in IDR terms) riding on moderate assets growth and larger CASA. The Thai consumer operations posted a smaller loss of RM3 million compared to a RM13 million loss in 9MFY12 while the Singapore consumer operations PBT jumped 220% to RM16 million. Consumer banking strengthened its position as the largest contributor to Group PBT at 41% (from 34% in 9MFY12).