CIMB Niaga records strong performance in 1H

KUALA LUMPUR: CIMB Group Holdings Bhd’s 92.5%-owned Indonesian arm PT Bank CIMB Niaga Tbk has recorded strong growth performance in its first half (1H) of 2023 following a reduction in non performing loans (NPLs).

CIMB Niaga’s gross NPLs declined to 2.5% in June from 3.5% in the same corresponding period last year.

“It is worth underscoring the notable improvement in asset quality, as shown by the significant decline in gross NPLs,” CIMB Niaga president director Lani Darmawan said in a statement.

CIMB Niaga reported an unaudited consolidated profit before tax of 4.2 trillion rupiah (RM1.26bil) in the first half of 2023 which is a 25.8% year-on-year (y-o-y) growth.

“Our business performance and revenue growth remained solid in the first half of 2023.

“With strong cost controls, improved asset quality, and lower cost of credit, we were able to continue creating greater value for our shareholders as evidenced by the 15.4% return on equity,” Lani said.

The lender noted that the resilient results were due to prudent strategies and a customer-centric approach despite the challenging economic conditions.

“Our unwavering confidence has propelled us towards the successful realisation of our 2023 goals,” Lani said.

CIMB Niaga maintained a solid capital and liquidity position with a capital adequacy ratio and loans to deposit ratio of 23.2% and 86% respectively.

Indonesia’s second largest privately owned bank’s total consolidated assets stood at 329.7 trillion rupiah (RM98.59bil) as of June 30.

Total deposits reached 235.8 trillion rupiah (RM70.51bil) with the current account to savings account ratio at 64.3%

Meanwhile, CIMB Niaga’s total loans grew 8.6% y-o-y to 206 trillion rupiah (RM61.6bil) contributed mainly by a growth in corporate banking and consumer banking.

Mortgages grew by 4.8% y-o-y, while auto loans rose 14.6% y-o-y, it said.

In the syariah banking segment, CIMB Niaga’s Islamic business unit said it maintained its position as the largest Islamic business unit in the republic, with total financing valued at 53 trillion rupiah (RM15.85bil) up 25.3% and deposits of 44.5 trillion rupiah (RM13.31bil) or 20.4% as at June 30.“CIMB Niaga Syariah continues to provide the best services for prospective haj pilgrims.

“One of the ways is by improving the system to facilitate account openings and haj registrations through digital channels,” Lani said.

CIMB Niaga said it would continue to prioritise digital transformation initiatives, enhance its digital channels and introduce innovative solutions to improve customer experience and convenience.

As of June 30, 98% of CIMB Niaga’s total customer transactions were made through branchless banking channels such as OCTO Mobile, OCTO Clicks, automated teller machines and mobile wallet.

“We remain focused on driving sustainable growth and maintaining our commitment to responsible banking practices as well as social initiatives that positively impact the communities we serve,” Lani added.