JAKARTA: The Indonesian arm of CIMB Group Holdings Bhd (CIMB), CIMB Niaga Tbk (CIMB Niaga), yesterday announced that for the nine-month period up to September 2011, the group recorded 2.38 trillion rupiah (RM843.93 million) of consolidated net profit, which is an increase of 0.59 trillion rupiah or 33% from 1.79 trillion rupiah for last year’s corresponding period.
The higher consolidated net profit translated into an increase in its earnings per share (EPS) to 95.10 rupiah, which is 20.12 rupiah or 26.8% higher than 74.98 rupiah recorded for the same period last year. The higher net profit was largely driven by an increase in the total operating income of 1.15 trillion rupiah to 7.65 trillion rupiah, up from 6.5 trillion rupiah for the last corresponding period.
During the three quarters until September 2011, loans in all business segments namely corporate, commercial and retail grew by 30%, 28% and 18% respectively over the same period last year. The group stated that it will continue to improve its Islamic lending, micro-financing and rahn service.
“The management fully supports the development of the micro-financing and rahn business by adding new outlets to the Mikro Laju network — increased to 201 as at September 2011 from 72 as at September 2010. Another new product, rahn, has seen an impressive financing growth by 419% to 31.32 billion rupiah as at September 2011, compared with 6.03 billion rupiah for the same period last year,” according to president director of CIMB Niaga Arwin Rasyid.
More than 11% of total loans were disbursed outside of Java, reflecting CIMB Niaga’s diversified approach to loan distribution in Indonesia. CIMB Niaga continues to ensure the quality of its assets as reflected in its non performing loans (NPL) ratio (gross) of 2.63%, better than last year’s achievement of 2.73%.
In addition, the bank has also made some improvement in third-party deposits which reached 126.3 trillion rupiah, an increase of 18% from 106.6 trillion rupiah for the corresponding period. This maintains its position as the fifth largest bank in Indonesia in terms of third-party deposits. Meanwhile, CASA (current account savings account) increased by 13% year-on-year to 54.68 trillion rupiah.
As at September 2011, its asset size increased to 159.15 trillion rupiah, an increase of 30 trillion rupiah or 23% from the corresponding period in 2010 at 129.14 trillion rupiah, maintaining its position as Indonesia’s fifth largest bank by asset size.
“In order to cope with high levels of competition in the banking industry, CIMB Niaga will continue to maintain a sound balance in all aspects of the business — corporate, commercial, retail and Islamic banking. We will also continue to invest in our infrastructure, so that we will bring on quality banking solutions to all our customers and stakeholders across Indonesia,” Arwin added.
“This year we focus more on improving our CASA, high-margin businesses, alternate channels and efficiency. CIMB Niaga has re-launched the personal loans product in May and launched the two-wheeler financing through its subsidiary, CIMB Niaga Auto Finance, in July. Customers now can access this service through nine outlets located in various cities in Indonesia,” Arwin said.
The group’s channel network increased to 859 as at September 2011 from 711 a year ago and it had 23 branches of Islamic banking units as at September 2011.
This article appeared in The Edge Financial Daily, October 25, 2011.
The higher consolidated net profit translated into an increase in its earnings per share (EPS) to 95.10 rupiah, which is 20.12 rupiah or 26.8% higher than 74.98 rupiah recorded for the same period last year. The higher net profit was largely driven by an increase in the total operating income of 1.15 trillion rupiah to 7.65 trillion rupiah, up from 6.5 trillion rupiah for the last corresponding period.
During the three quarters until September 2011, loans in all business segments namely corporate, commercial and retail grew by 30%, 28% and 18% respectively over the same period last year. The group stated that it will continue to improve its Islamic lending, micro-financing and rahn service.
“The management fully supports the development of the micro-financing and rahn business by adding new outlets to the Mikro Laju network — increased to 201 as at September 2011 from 72 as at September 2010. Another new product, rahn, has seen an impressive financing growth by 419% to 31.32 billion rupiah as at September 2011, compared with 6.03 billion rupiah for the same period last year,” according to president director of CIMB Niaga Arwin Rasyid.
More than 11% of total loans were disbursed outside of Java, reflecting CIMB Niaga’s diversified approach to loan distribution in Indonesia. CIMB Niaga continues to ensure the quality of its assets as reflected in its non performing loans (NPL) ratio (gross) of 2.63%, better than last year’s achievement of 2.73%.
In addition, the bank has also made some improvement in third-party deposits which reached 126.3 trillion rupiah, an increase of 18% from 106.6 trillion rupiah for the corresponding period. This maintains its position as the fifth largest bank in Indonesia in terms of third-party deposits. Meanwhile, CASA (current account savings account) increased by 13% year-on-year to 54.68 trillion rupiah.
As at September 2011, its asset size increased to 159.15 trillion rupiah, an increase of 30 trillion rupiah or 23% from the corresponding period in 2010 at 129.14 trillion rupiah, maintaining its position as Indonesia’s fifth largest bank by asset size.
“In order to cope with high levels of competition in the banking industry, CIMB Niaga will continue to maintain a sound balance in all aspects of the business — corporate, commercial, retail and Islamic banking. We will also continue to invest in our infrastructure, so that we will bring on quality banking solutions to all our customers and stakeholders across Indonesia,” Arwin added.
“This year we focus more on improving our CASA, high-margin businesses, alternate channels and efficiency. CIMB Niaga has re-launched the personal loans product in May and launched the two-wheeler financing through its subsidiary, CIMB Niaga Auto Finance, in July. Customers now can access this service through nine outlets located in various cities in Indonesia,” Arwin said.
The group’s channel network increased to 859 as at September 2011 from 711 a year ago and it had 23 branches of Islamic banking units as at September 2011.
This article appeared in The Edge Financial Daily, October 25, 2011.
