JAKARTA, Indonesia: PT Bank CIMB Niaga Tbk (CIMB Niaga) reported a consolidated net profit of 1.8 trillion rupiah in the first half of 2018, representing a 28.1 per cent year-on-year growth and translating into an earnings per share of 70.54 trillion.
The improved net profit came on the back of a 32.6 per cent increase in non-interest income to 1.9 trillion rupiah and a 27.1 per cent year-on-year decline in provision expenses.
CIMB Niaga’s loan loss coverage remained comfortable at 106.83 per cent.
President director of CIMB Niaga Tigor M. Siahaan said: “Our 1H18 performance continued to improve. The operating income managed to grow by 1.5 per cent year-on-year, mostly due to the 32.6 per cent improvement in non-interest income.
“Operating costs continued to be well managed, rising only 3.4 per cent year-on-year, while the gradual improvement in the economic environment positively impacted our provisions which declined 27.1 per cent. This brought about a 28.1 per cent growth in net profit to 1.8 trillion rupiah.
“We will continue the cautious growth trajectory with asset quality as a priority,” he said.
With total assets of I260.1 trillion rupiah as at June 30 2018 representing a 7.6 per cent growth, CIMB Niaga maintained its position as Indonesia's second largest national private-listed bank by assets.
Total gross loans increased 3.0 per cent year-on-year to 185.7 trillion rupiah as at June 30, 2018. Of the total loans, consumer loans stood at 47.9 trillion rupiah with micro small medium enterprise loans at 35.8 trillion rupiah.
Wholesale banking comprised the largest proportion of the loan book, with corporate loans at 70.0 trillion rupiah and commercial loans at 32.0 trillion rupiah.
“Our strategy to focus on the mortgage and SME segments is gaining traction, with each segment growing by 8.9 per cent and 6.2 per cent year-on-year respectively, while our corporate loans grew by 8.8 per cent,” Tigor added.
Total third party deposits stood at 190.3 trillion rupiah, underpinned by a 12.8 per cent year-on-year growth in CASA.
As at June 30, 2018, 93.5 per cent of the total transactions by customers were made through digital banking channels such as CIMB Clicks, Go Mobile, ATMs and Rekening Ponsel (mobile wallet).