KUALA LUMPUR (Oct 27): PT CIMB Niaga Tbk, the 92.5%-owned subsidiary of CIMB Group Holdings Bhd, saw its unaudited consolidated net profit rise 27.33% to 4.95 trillion rupiah (RM1.49 billion) for the first nine months ended Sept 30, 2023 (9MFY2023), from 3.89 trillion rupiah (RM1.17 billion) in the same period last year. 

Earnings per share grew to 196.6 rupiah from 154.13 rupiah, CIMB’s filing with Bursa Malaysia showed.

Its interest income also rose 19.2% to 16.71 trillion rupiah in 9MFY2023 from 14.02 trillion rupiah in the same period a year earlier.

In a statement, CIMB Niaga president director Lani Darmawan attributed the improved performance on the back of the bank’s prudent and proactive asset quality management.

“Amid a rapidly evolving operating environment, we continued to deliver attractive profitability and capital returns to our shareholders while further strengthening our regulatory capital and liquidity ratios.

“Our core focus areas remain firmly anchored in our strategy, expanding our customer base and strengthening our CASA [current account savings account] portfolio, ensuring sustainable asset quality improvement and driving deeper digital engagement for a more robust future,” she said.

CIMB Niaga’s return on equity (ROE) rose 15.4%, while maintaining its solid capital and liquidity position with a capital adequacy ratio (CAR) of 23.8% and loan to deposit ratio (LDR) of 86.4%.

Its gross non-performing loans (NPL) also declined to 2.4% in 9MFY2023, compared to 3.6% in 9MFY2022.

The bank's total assets stood at 329.1 trillion rupiah as of Sept 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 235.3 trillion rupiah with a CASA ratio of 66.7%.

Total loans stood at 205.6 trillion rupiah, with the highest growth from the small and medium enterprises (SME), followed by corporate banking and consumer banking.

CIMB Niaga’s retail loans were contributed by growth from auto loans by 11.5% year-on-year (y-o-y) and mortgage by 2.7% y-o-y.

In sharia banking, CIMB Niaga's Islamic Business Unit (CIMB Niaga Syariah) maintained its position as the largest Unit Usaha Syariah (Islamic Business Unit) in Indonesia, with total financing of 53 trillion rupiah and deposits of 42.7 trillion rupiah as at Sept 30.

Shares in CIMB Group settled unchanged at RM5.68 on Friday (Oct 27), with a market capitalisation of RM60.58 billion.