CIMB achieves second quarter net profit of RM 1.08 billion, lowers loan growth target due to Covid-19

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KUALA LUMPUR: CIMB Group Holdings Bhd reported improved second quarter earnings thanks to higher operating income, tight cost control and lower provisions.

Total growth in gross loans and deposits has been marginal due to the environment affected by the pandemic and its own shift in business portfolio.

Net profit for the quarter ended June 30 was RM 1.08 billion from RM 277 million a year ago.

Revenue jumped to RM 4.67 billion from RM 3.86 billion previously. The bank declared a dividend of 10.44 sen per share.

“Although we had a strong performance in the first half, we remain cautious given the potential downside risks in the second half,” Group CEO Abdul Rahman Ahmad said in a statement today.

“This is mainly due to the Covid-19 Delta variant, which has added to the uncertainty surrounding the opening of regional economies and economic recovery,” Abdul Rahman said.

The bank on Monday lowered its loan growth forecast to 2% -3% and expects provision levels to remain high with a higher modification loss due to repayment assistance from affected borrowers by Covid-19, via the payment assistance program in accordance with the PEMULIH assistance program.

“Our targeted investments under our Forward23 + strategic plan are progressing well, particularly in the areas of cost rationalization and wealth management,” said Abdul Rahman.

“With more than 50% of banking transactions now done online, we have strengthened our digital offering and will continue to invest in technology to improve the customer experience,” he said.

TNG Digital, CIMB’s Touch ‘n Go Sdn Bhd e-wallet joint venture and Chinese group Ant, added 600,000 users to 16.1 million. GO +, the investment offering available in the Touch ‘n Go electronic wallet, also reached 1.2 million investors in three months, with total assets under management of RM112 million in June 2021.

Similarly, in the region, CIMB Philippines reached 3.9 million customers and a deposit book of RM 1.1 billion with 400,000 customers added in 2Q21.


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