Bangkok--26 Nov--CIMB THAI
8.4% Y-o-Y growth in 9M15 operating income coupled with well contained operating expenses brought about a pre-provision operating profit growth of 12.4% Y-o-YContinued stresses in Indonesia resulted in increased provisions, impacting the 9M15 net profitSustained Q-o-Q growth momentum with 3Q15 net profit improving 2.9% from higher operating income and lower provisions, excluding restructuring costsBenefits of cost management initiatives starting to show results from 3Q159M15 annualised ROE stood at 8.8% excluding restructuring costsExcluding FX fluctuations,9M15 loan growth was 10.7% Y-o-Y, with deposits increasing 10.0%
CIMB Group Holdings Berhad ("CIMB Group" or the "Group") today reported a net profit of RM2,024million for 9 months 2015 ("9M15"), equivalent to a net earnings per share ("EPS") of 23.9sen.The Group saw a 8.4% year-on-year ("Y-o-Y") expansion in 9M15 operating income with well contained operating expenses, although increased Y-o-Y provisions brought about the 11.9% Y-o-Y reduction in the Business As Usual ("BAU") 9M15 net profit, after excluding exceptional expenses from restructuring and the Mutual Separation Scheme ("MSS").
The Group's annualised BAU 9M15 net return on average equity ("ROE") was 8.8%. For the third quarter of 2015 ("3Q15"), the Group's BAU net profit of RM902 million was 2.9% higher quarter-on-quarter("Q-o-Q").
"Our continued improvement in Q-o-Q performance, amidst the prevailing economic uncertainties and challenges, reaffirms our business recalibration and the Group's seriousness in managing cost. This is reflected in our 8.4% Y-o-Y growth in operating income and containment of operating expenses over the period.
In addition to the structural cost alignment initiatives of streamlining the ex-ASEAN IB operations and the MSSin Malaysia and Indonesia, we have also improved processes and increased automation to increase efficiency. We will continue to push the cost management agenda further.
In terms of business segments, we are pleased to see the Group's business strategies bearing results, with our Consumer and Commercial Banking operations gaining good traction across the region."," said TengkuDato' Sri Zafrul Aziz, Group Chief Executive, CIMB Group.
"2015 is proving to be a challenging year for the financial services industry. Our Malaysia operations showed encouraging performance in difficult conditions, but we continue to be cognisant of moderating economic growth and tightening consumer spending. In Singapore, despite industry tightening measures, we continue to sustain positive growth momentum on the back of our cost-efficient business platform. CIMB Niaga in Indonesia continues to register momentum, and our key focus will be on asset quality. While prospects for our Thai operations are challenging in the prevailing economic environment, we remain committed in view of the long-term strategic prospects.
We have embarked on our three-year T18 recalibration initiatives early this year and as a result, the Group is well positioned from a structural alignment and cost management perspective to face the prevailing headwinds. While our growth strategy continues to be measured and considered in an environment of weaker regional economies and capital markets, we remain confident that our T18 strategy will continue to deliver results we set out to achieve", concluded TengkuZafrul.