CIMB Niaga 1Q consolidated net profit increases
PETALING JAYA: CIMB Group Holdings Bhd’s Indonesian banking arm began the financial year 2024 with a drop in net interest income, as the growth in the first-quarter’s interest expenses outpaced the increase in interest income.

CIMB Niaga, a 92.5% indirectly held subsidiary of CIMB, reported a 3.6% year-on-year (y-o-y) decline in consolidated net interest income to 3.28 trillion rupiah (about RM965mil).

However, reduced net other operating expenses, among others, lifted the bank’s consolidated net profit by 6.3% y-o-y to 1.68 trillion rupiah. As a result, the earnings per share also improved to 66.96 rupiah in the first quarter.

CIMB Niaga president director Lani Darmawan said in a statement that the bank’s cost-to-income ratio or CIR had fallen below 45% in the January-March 2024 period.

“Our performance in the first quarter of 2024 is testament to our relentless execution of the five-pillar strategy focused on sustainable profit growth.”

CIMB Niaga’s total deposits increased by 3.3% y-o-y to 248 trillion rupiah.

This was supported by an 8.9% growth in the current account and savings account.

Meanwhile, total loans and financing grew 6% y-o-y to 211.6 trillion rupiah with the highest growth from small and medium enterprise and consumer banking.

The increase in retail loans was largely contributed by auto loans, which grew 15.8% y-o-y.

In syariah banking, CIMB Niaga’s Islamic business unit maintained its top position in Indonesia, with total financing valued at 56.2 trillion rupiah and deposits of 50.6 trillion rupiah as at March 31.

“CIMB Niaga maintains a solid capital and liquidity position with a capital adequacy ratio and loan-to-deposit ratio of 24.5% and 84.2%, respectively,” the bank said in a statement.

Separately, CIMB Niaga announced a cash dividend of 3.1 trillion rupiah, representing 50% of the bank’s FY23 net profit.
Corporate News,CIMB,CIMBNiaga,IndonesiaBanking,ProfitGrowth,SyariahBanking,RetailLoans
CIMB Group Holdings Bhd’s Indonesian banking arm began the financial year 2024 with a drop in net interest income, as the growth in the first-quarter’s interest expenses outpaced the increase in interest income.