CIMB Niaga reports record-high PBT of 8.4 trillion rupiah in FY23

KUALA LUMPUR: CIMB Group Holdings Bhd’s 92.5% indirectly held Indonesian subsidiary PT Bank CIMB Niaga Tbk (CIMB Niaga) posted a 26.7% year-on-year (YoY) jump in pre-tax profit (PBT) to IDR8.4 trillion in 2023 (FY23), translating to earnings per share of IDR259.45.

“Our stellar performance in 2023 is a reflection of our resilience, agility, and customer-centric approach. We continue accelerating profitable growth, as evidenced by the notable increase in profit before tax, reaching IDR8.4 trillion, the highest recorded to date.

“It is noteworthy to highlight the significant improvement in asset quality, as indicated by the substantial decrease in gross non-performing loans (NPL) from 2.8% in December 2022 to 2.0% in December 2023,” president director Lani Darmawan said in a statement.

CIMB Niaga maintains a solid capital and liquidity position with a capital adequacy ratio (CAR) and loan-to-deposit ratio (LDR) of 24.0% and 89.3%, respectively.

CIMB Niaga’s total consolidated assets stood at IDR334.4 trillion as of Dec 31, 2023 solidifying the bank’s position as Indonesia’s second largest privately owned bank.

Meanwhile, total deposits rose to IDR235.9 trillion, showcasing a robust current account and savings account (CASA) ratio of 63.9%.

“In 2023, CIMB Niaga managed to maintain its NPS score of 50%. This indicates the number of satisfied customers who are not only loyal but

also willing to recommend CIMB Niaga to their family, friends, or colleagues. We extend our sincere appreciation to our valued customers, dedicated employees, and supportive stakeholders for their trust and confidence in CIMB Niaga through the years,” Lani said.

Its total loans/financing grew 8.5% YoY to IDR213.4 trillion with the highest growth from corporate banking of 11.7% YoY, followed by SME at 9.5% YoY and consumer banking at 6.9% YoY.

The bank said the Increase in retail loans was largely contributed by growth from auto loans of 15.7% YoY.

In Sharia Banking, CIMB Niaga’s Islamic Business Unit (CIMB Niaga Syariah) maintained its position as the largest Unit Usaha Syariah (Islamic Business Unit) in Indonesia, with total financing valued at IDR55.2 trillion (+17.0% YoY) and deposits of IDR44.9 trillion (+13.7% YoY) as at Dec 31, 2023.

“In accordance with our steadfast commitment to sustainability, we have accomplished several significant milestones in 2023, including attaining sustainable financing amounting to IDR55.45 trillion, or 25.97% of our total financing. Additionally, we successfully reached a 22% reduction target in Scope 1 and Scope 2 greenhouse gas (GHG) emissions compared to the baseline emissions of 2019,” Lani said.