Username
Password
Forget Password?
  1. Indices
  2. Commodities
  3. Currencies
Straits Times 3,169.89 +9.17 +0.29%
Hang Seng 27,353.93 +86.80 +0.32%
Dow Jones 25,585.69 +95.22 +0.37%
Shanghai Composite 2,852.99 +0.48 +0.02%
CIMB Group Q3 Operating Income Up 9%; Earnings Down On Higher Loan Provisions
Malaysia Daily Bulletin | 26 November 2015
By:
  • 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.


Join The Conversation
The Shares Investment editorial team welcomes constructive feedback on our coverage and content. We would also be delighted to answer any questions on the above article. Leave us a comment below, and we'll get back to you shortly!

All Rights Reserved. Pioneers & Leaders (Publishers) Pte Ltd. Best viewed with Mozilla Firefox 3.5 and above.