PETALING JAYA: CIMB Group Holdings Bhd posted a 23.8% decline in net profit to RM1.51 billion for the second quarter ended June 30, 2019 against RM1.98 billion in the same quarter a year ago.
This was due to the absence of one-off gain of RM928 million from the disposal of its stake in CIMB-Principal Asset Management and CIMB-Principal Islamic Asset Management in the previous corresponding period.
Excluding the one-off item, its profit would have been 43.3% higher.
Its revenue was down 8.1% to RM4.47 billion from RM4.86 billion.
The bank has proposed to declare an interim dividend of 14 sen per share for the quarter under review, representing a payout ratio of 50.4%.
CIMB’s first-half net profit slipped 17.8% to RM2.7 billion from RM3.29 billion in the same period a year ago. Revenue came in at RM8.63 billion, 5.8% lower than the RM9.17 billion achieved previously.
For the period under review, the bank’s operating income rose 4.8% to RM8.64 billion. Net interest income grew 3.3% driven by the 6.9% expansion in loans growth, while the 8.5% increase in non-interest income was on the back of better capital market activity.
The group’s gross impairment ratio stood at 3.1% as at end-June 2019, with an allowance coverage of 96.6%. Its net interest margin was lower at 2.46% mainly from the spread compression in Malaysia.
As at June 30, 2019, CIMB’s total capital ratio stood at 16.6% while the common equity tier 1 capital ratio at 12.9%.
source https://www.thesundaily.my/business/cimb-s-q2-profit-down-on-absence-of-one-off-gain-EE1314547
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