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CIMB Group Q3 Operating Income Up 9%; Earnings Down On Higher Loan Provisions
Malaysia Daily Bulletin | 26 November 2015
  • CIMB Group Holdings recorded an 8.8 percent growth in 3Q15 operating income to RM3.8 billion driven by a 10.8 percent increase in net interest income.
  • Consumer and commercial banking profit before tax (PBT) expanded 21.9 percent and 11.6 percent respectively due to asset growth across all geographies while wholesale banking PBT was lower as a result of the weaker treasury & markets and investment banking operations.
  • Similarly, operating income for 9M15 gained 8.4 percent to RM11.4 billion underpinned by a 12.8 percent improvement in non-interest income and 6.6 percent increase in net interest income.
  • However, 3Q15 and 9M15 bottom line fell 9.7 percent and 30.4 percent to RM803.9 million and RM2 billion respectively, impacted by higher corporate loan provisions from Indonesia.

Significance: While 2015 is proving to be a challenging year for the financial services industry, the group’s growth strategy continues to be measured and it remains confident that its Target 2018 strategy – which involves the bank achieving a return on equity of 15 percent, a common equity Tier-1 ratio of over 11 percent, a cost-to-income ratio of below 50 percent and a 60 percent consumer banking income by 2018 – will help deliver results.

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