By BERNAMA
PT Bank CIMB Niaga Tbk reported an operating income of 6.73 trillion rupiah (RM1.9 billion) for the six months ended June 30, 2015, up 1.5% year-on-year (y-o-y).
Net profit for the period amounted to 176 billion rupiah while earnings per share stood at 7.02 rupiah.
In a statement today, CIMB Niaga attributed the softer first half of 2015 to the economic slowdown, coupled with a challenging business environment.
It added the lower y-o-y net profit came mainly from a high level of provisions predominantly from the coal and coal-related sector.
President director Tigor M. Siahaan said despite the challenging environment the bank’s core business remained strong, as its topline results continued to improve as reflected by the 8.5 per cent growth in net interest income, lifted by expansion in loans across all markets and consumer segments.
“Despite our lacklustre y-o-y performance, the quarter-on-quarter traction provided a base for a more positive outlook for the second half of 2015, in line with sustained topline growth and improvement in provision levels,” he added.
Tigor said the bank was confident that its gross non-performing loans of 4.28% as at June 30, 2015, would be gradually be lower going forward.
“We believe CIMB Niaga will have a stronger foundation in the second half of 2015 by continuing to focus on loan and deposit growth as well as managing operating efficiencies,” he said.
As at June 30, 2015, CIMB Niaga maintained as Indonesia’s fifth largest bank by assets as its total assets rose 9.1% y-o-y to 245.24 trillion rupiah due to a 9.8 per cent growth in gross loans to 180.82 trillion rupiah.
Corporate loans recorded the highest growth of 23.4% y-o-y to 58.09 trillion rupiah, followed by Micro Small Medium Enterprise which increased 7.9% y-o-y to 35.94 trillion rupiah.
Consumer loans gained 6.9% y-o-y to 51.25 trillion rupiah and loans from commercial banking declined by 2.1% y-o-y to 35.54 trillion rupiah due to a decrease in investment loans by 9.1% y-o-y.
CIMB Niaga’s loan-to-deposit ratio was 95.8% as of end-June 2015, declining from 97.8% in the same period last year.
As at June 30, 2015, CIMB Niaga’s capital adequacy ratio stood at 16% compared with 16.1% in the same period last year.
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