KUALA LUMPUR (July 31): PT CIMB Niaga Tbk, the 92.5%-owned subsidiary of CIMB Group Holdings Bhd, saw its consolidated net profit rise 27.4% to 3.27 trillion rupiah (RM977.27 million) for the first half ended June 30, 2023 (1HFY2023), from 2.57 trillion rupiah (RM767.1 million) in the same period last year.

Earnings per share grew to 129.67 rupiah from 101.65 rupiah, CIMB’s filing with Bursa Malaysia showed.

CIMB Niaga paid total dividends of 2.87 trillion rupiah in 1HFY2023, which is 22.43% higher than the 2.35 trillion rupiah paid in 1HFY2022.

In a statement, CIMB Niaga president director Lani Darmawan attributed the improved performance to strong cost controls, improved asset quality and lower cost of credit.

The group saw its return on equity (ROE) improving to 15.4%, while maintaining its solid capital and liquidity position with a capital adequacy ratio (CAR) of 23.2% and loan to deposit ratio (LDR) of 86%, as of June 30.

Its total assets stood at 329.7 trillion rupiah as of June 30, which it said is solidifying CIMB Niaga’s position as Indonesia’s second-largest privately-owned bank.

Meanwhile, the bank’s total deposits reached 235.8 trillion rupiah with a current account and savings account (CASA) ratio of 64.3%, driven by its efforts in deepening customer relationships and customer experience through digital touchpoints.

Total loans stood at 206 trillion rupiah, contributed mainly from the 13.2% year-on-year (y-o-y) growth in corporate banking and 8% growth in consumer banking, the bank said.

“Mortgages grew by 4.8% y-o-y, while auto loans rose 14.6% y-o-y, including contributions from the bank’s subsidiary, PT CIMB Niaga Auto Finance.

“In shariah banking, CIMB Niaga's Islamic business unit (CIMB Niaga Syariah) maintained its position as the largest Islamic business unit in Indonesia, with total financing valued at 53 trillion (including salam financing) and deposits of 44.5 trillion as at June 30," the bank noted.

Lani said the bank continues its network expansion by developing digital-based products to complement the offerings at existing branches.

“We continue to prioritise digital transformation initiatives, enhancing our digital channels and introducing innovative solutions to improve customer experience and convenience,” she said.

According to her, 98% of total customer transactions were made through branchless banking channels such as OCTO Mobile, OCTO Clicks, automated teller machines, and Rekening Ponsel (mobile wallet) as of June 30.

Shares of CIMB closed five sen or 0.91% higher at RM5.55 on Monday (July 31), giving it a market capitalisation of RM59.19 billion.