CIMB Group Holdings Berhad (“CIMB Group”) today reported a record net profit of RM3.263 billion for 9 months FY12 (“9MFY12”), representing a 12.6% year-on-year (“Y-o-Y”) growth and equivalent to net earnings per share (“EPS”) of 43.9 sen. The annualised net return on average equity (“ROE”) was 16.3%. For third quarter FY12 (“3Q12”), the Group’s net profit of RM1.143 billion was 3.0% higher than 2Q12, and 12.9% above its 3Q11 net profit of RM1.012 billion. "We had a good 3Q12 and 9MFY12, underpinned by strong performances at CIMB Niaga, CIMB Bank Singapore and Corporate Banking and Treasury Markets (“CBTM”)," said Dato’ Sri Nazir Razak, Group Chief Executive, CIMB Group. “At the same time, we defended key market shares and added important building blocks to the franchise.”
2) CIMB Group Y-o-Y Results
CIMB Group’s 9MFY12 revenue increased by 15.8% Y-o-Y to RM10.126 billion, largely due to the 25.8% expansion in non-interest income. The Group’s profit before tax (“PBT”) was 13.4% higher at RM4.307 billion as increased credit charges and overhead expenses partially offset the revenue improvement. For 9MFY12, the Group’s regional Consumer Bank PBT expanded by 13.5% Y-o-Y to RM1.672 billion. The Malaysia & Singapore consumer operations PBT grew 4.0% Y-o-Y as asset and net interest income growth moderated. The consumer operations’ PBT in Indonesia however expanded by 55.3% Y-o-Y from a combination of better margins in 9M12 and growth in assets, partially offset by weaker currency translation. The Thai consumer operations lost RM13 million due to higher provisions and the retrospective implementation of a new deposit insurance framework.
The Group’s regional Wholesale Banking PBT rose 24.5% Y-o-Y to RM2.240 billion principally driven by the uptick in the Treasury & Markets division PBT to RM1.116 billion from the strong flows in debt capital markets and foreign exchange. Investment Banking PBT was lower by 27.0% Y-o-Y due to lower income and initial costs related to the acquisition of selected APAC IB businesses of The Royal Bank of Scotland (“RBS”). Corporate Banking PBT was 1.8% Y-o-Y higher in line with asset growth partially offset by higher provisions. Investments PBT were lower by 24.9% Y-o-Y at RM395 million due to one-off write-backs in 1H11.
Consumer Banking operations remain the largest contributor to Group PBT at 39% (no change from 9MFY11). Treasury & Markets contribution to Group PBT jumped to 26% from 16% in 9MFY11. Corporate Banking, Investment Banking and Investments contributed 22%, 4% and 9% respectively. CIMB Niaga’s PBT rose 29.9% Y-o-Y to IDR4,255 billion while its contribution to the Group was 24.4% higher Y-o-Y at RM1.418 billion, accounting for 33% of Group PBT. CIMB Thai’s PBT rose 63.9% to THB1.462 billion and after GAAP and FRS139 adjustments, its contribution to the Group was 218.0% higher at RM194 million, equivalent to 5% of Group PBT. CIMB Singapore’s PBT rose 63.6% to RM128 million increasing its share of Group PBT to 3%. Total non-Malaysian PBT increased to 43% in 9MFY12 from 38% in 9MFY11.
The Group’s total gross loans expanded 9.8% Y-o-Y (excluding the declining bad bank loan book). After adjusting for the significant foreign exchange fluctuations (-11.4% for IDR/MYR and -2.9% for THB/MYR), the Group’s total gross loans increased by 12.1% Y-o-Y. Corporate loans increased 10.7% while retail loans and commercial banking loans grew 8.9% and 11.0% respectively.
Total Group deposits grew by 6.1% Y-o-Y but was 9.0% higher Y-o-Y after excluding foreign exchange fluctuations. This was driven by a 9.0% expansion in retail deposits and a 5.4% growth in commercial banking deposits. Corporate and Treasury deposits were 3.3% higher Y-o-Y. Geographically, deposit growth was strongest in Thailand at 18.5% from a low base, while Malaysian deposits expanded at 5.7%. Indonesia and Singapore deposits grew 2.5% and 15.7% respectively Y-o-Y in Ringgit terms. The Group’s CASA ratio increased slightly to 34.6% from 33.0% last year while overall net interest margin was marginally lower at 3.08% from 3.12% last year.
The Group’s total loan impairment of RM277 million in 9MFY12 was a 39.9% rise from the RM198 million in 9MFY11, which included substantial write-backs and recoveries. The Group’s total annualised credit charge was 0.18% which is still below the 0.31% full year target. The Group’s gross impairment ratio improved to 4.2% for 9MFY12 from 5.5% as at 9MFY11, with an allowance coverage of 84.0%. The Group’s cost to income ratio improved to 55.8% compared to 56.1% in 9MFY11. CIMB Bank’s risk weighted capital ratio stood at 15.2% while its core capital ratio stood at 13.4% as at 30 September 2012 (after inclusion of 9MFY12 net profits). CIMB Group’s double leverage and gearing stood at 116.9% and 19.1% respectively as at end-September 2012.
Re-disseminated by The Asian Banker