CIMB Group announces Profit Before Tax of RM1.60 billion for 1Q19
• 1Q19 net profit of RM1.19 billion with annualised ROE of 9.2%
• YoY PBT declined from lower operating income due to absence of the RM152 million gain from the CSI sale, and higher operating cost, offset by a reduction in loan loss provisions
• Better performance QoQ, as PBT grew 6.0% while net profit increased by 6.7% on the back of 2.2% growth in operating income
• Lower loan loss charge of 0.34% in 1Q19 compared to 0.49% in 1Q18
• Robust 7.6% YoY loan growth supported by a 7.7% YoY growth in Malaysia
• Strengthened Group CET1 ratio to 12.8% as at 31 March 2019
Summary
CIMB Group Holdings Berhad (“CIMB Group” or the “Group”) today reported a Profit Before Tax (“PBT”) of RM1.60 billion for the first quarter of 2019 (“1Q19”). The 8.0% year-on-year (“YoY”) decline was attributed to a lower operating income and a 7.5% increase in operating expenses, partially offset by a 25.2% YoY decline in loan loss provisions. Operating income was 3.2% lower YoY due to a decline in fee income and the RM152 million gain from the sale of CIMB Securities International (“CSI”) in the prior year’s corresponding period. The Group’s 1Q19 net profit was 8.7% lower YoY at RM1.19 billion, translating to a net Earnings Per Share (“EPS”) of 12.5 sen and an annualised Return On average Equity (“ROE”) of 9.2%.
“Although our PBT declined by 8.0% YoY to RM1.60 billion, the QoQ performance improved by 6.0%. This was achieved amid a challenging operating landscape in our key markets. The QoQ performance was supported by better operating income in 1Q19, driven by stronger performances in Thailand and Singapore. Our ROE came in at 9.2%, and we are pleased that our CET1 strengthened to 12.8% while loan loss charge improved to 0.34%,” said Tengku Dato’ Sri Zafrul Aziz, Group CEO, CIMB Group.
Outlook
“We expect the rest of 2019 to remain challenging, amidst fresh trade tensions and other macroeconomic headwinds, coupled with tougher operating conditions in our major markets. However, we are confident that Forward23, our newly launched strategic growth plan, will accelerate growth and future-proof CIMB, particularly through investments in customer experience, our people and technology,” said Tengku Zafrul.