CIMB Niaga begins 2023 on firm footing with 1Q PBT up 30% to IDR2.02t

KUALA LUMPUR (April 27): PT Bank CIMB Niaga Tbk, a 92.5%-owned indirect subsidiary of CIMB Group Holdings Bhd, reported a consolidated profit before tax (PBT) of IDR2.02 trillion (RM612 million) in the first quarter ended March 31, 2023 (1QFY2023), up 29.5% from IDR1.56 trillion a year earlier, on good performance from all business segments.

Earnings per share came in higher at IDR63.42 for 1QFY2023 compared with IDR47.89 for 1QFY2022.

Interest income also rose 16.9% to IDR5.36 trillion in 1QFY2023 from IDR4.58 trillion a year earlier.

Gross non-performing loans also declined to 2.6% in 1QFY2023, from 3.6% in 1QFY2022 and 2.8% in 4QFY2022.

"These results allow us to accelerate value creation for our stakeholders and reinforce our confidence in a positive outlook for the rest of 2023. Our performance reflects Indonesia’s robust economic recovery and significant progress in the execution of our five-pillar strategy with a key focus on achieving sustainable profitable growth," CIMB Niaga president director Lani Darmawan said in a statement on Thursday (April 27).

"We will continue building and leveraging our digital capabilities to enhance customer experience and drive long-term goals,” he added. At end-March, 97% of the bank's total customer transactions were made through branchless banking channels such as OCTO Mobile, OCTO Clicks, automated teller machines and Rekening Ponsel (mobile wallet).

CIMB Niaga’s return on equity (ROE) improved to 15.1% in 1QFY2023. Its capital adequacy ratio stood at 21.3% while its loan to deposit ratio stood at 82.2%.

Total consolidated assets stood at IDR347.3 trillion as of March 31, solidifying the bank’s position as Indonesia’s second largest privately owned bank, said Lani.

In shariah banking, CIMB Niaga's Islamic business unit maintained its position as the largest Islamic business unit in Indonesia, with total financing valued at IDR50.2 trillion (including Salam financing) and deposits of IDR49.3 trillion as at March 31.

At 4.14pm, CIMB Niaga shares were up IDR15 or 1.21% at IDR1,255, giving it a market capitalisation of IDR31.22 trillion.