CIMB Niaga income up 7% for first quarter 2015
(28 April 2015 – Indonesia) PT Bank Niaga Tbk has reported an unaudited consolidated operated operating income of Rp3402 billion (A$3.3 million), a 7 percent increase on the year before.
Corresponding net profit of Rp83 billion for the three months ended 31 March 2015, translating to an earnings per share (EPS) of Rp3.29.
Net interest income improved 10.8 percent year-on-year on the back of 9.6 percent growth in gross loans and steady net interest margins.
However, the growth in operating income was partially offset by a 29.4 percent year-on-year decline in non-Interest income, which was impacted by weaker treasury market activity as well as the new bancassurance regulations which came in effect in March 2014.
The lower year-on-year net profit came about from higher levels of provisions and an 8.8 percent increase in operating expenses, in tandem with the Indonesian inflation rate of 8.4 percent for 2014.
Vice president director of CIMB Niaga, D James Rompas said, “Despite the challenging operating environment, our 1Q15 operating income continued to grow well, as reflected in a higher net interest income of 10.8 percent year-on-year.
“Nevertheless, asset quality remains a challenge given the economic conditions, volatile Rupiah and softer commodity prices.
“In line with our conservative standards of provisioning, we continue to increase recognition of impaired loans and have improved our loan loss coverage ratio from 98.8 percent in March 2014 to 102.6 percent in March 2015."
CIMB Niaga's gross loans expanded 9.6 percent year-on-year to Rp176.5 trillion as at 31 March 2015.
“Corporate loans grew by 16.3 percent year-on-year to Rp55.5 trillion, Micro Small Medium Enterprise (MSME) loans recorded a 10.9 percent year-on-year growth to Rp35.3 trillion, while Consumer loans grew by 6.6 percent year-on-year to Rp50.5 trillion.
Commercial loans posted a 3.3 percent year-on-year growth to Rp35.1 trillion.
Within the loan book, personal loans expanded the strongest, growing 33.2 percent year-on-year to Rp2.3 trillion, while Credit Cards loans increased 32.0 percent year-on-year to Rp5.4 trillion.
Total CASA increased 9.1 percent year-on-year to Rp78.9 trillion, with Current Accounts and Savings Accounts contributing Rp38.0 trillion and Rp40.9 trillion respectively.
For syariah banking, CIMB Niaga's Islamic Business Units (CIMB Niaga Syariah) total financing stood at Rp6.7 trillion with third-party deposits of Rp7.3 trillion as at 31 March 2015.
“We expect our performance will improve in the second quarter of the year in line with the stabilization of macroeconomic indicators, and CIMB Niaga will continue stance on adopting a measured and moderate asset growth trajectory while maintaining tighter cost controls and focus on asset quality,” James added.
Despite a challenging operating environment, CIMB Niaga maintains its Capital Adequacy Ratio (CAR) at 16.5 percent as at 31 March 2015.
To support its business growth, CIMB Niaga continues to improve customer experience by offering a full range of products and services through 944 network as at 31 March 2015 (including 20 mobile branches).
The nationwide network operates 3,288 automated teller machines (ATMs), 701 cash deposit machines (CDMs) and 201 self-service terminals (SSTs).
As at 31 March 2015, the number of Digital Lounges has increased to 21. Digital Lounge offers a range of banking services and facilities: from ATM to cash deposit machine, CIMB Clicks (internet banking) channel to touch-screen monitor with a video banking officer standing by to assist customers with their transactions.
Combining the latest technology, modern-style decor and fancy music, the place perfectly suits the taste of those who feel young at heart.
CIMB Niaga continues to optimise the most advanced technologies in developing digital features for its branchless banking services, including upgrading its core banking system to support future business growth.
As at end of March 2015, around 84.3 percewnt of the total transactions made at CIMB Niaga were through branchless banking channels such as CIMB Clicks, Go Mobile and the innovative Rekening Ponsel (mobile wallet).
The number of CIMB Clicks users grew by 29.3 percent year-on-year, reaching over 1.1 million active users while Go Mobile reached 918,000 users, an increase of 52.2 percent year-on-year.
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