Its earnings per share stood at of 12.5 sen and an annualised return on average equity (ROE) of 9.2% during the quarter.“Although our PBT declined by 8.0% YoY to RM1.60bil, the quarter-on-quarter (QoQ) performance improved by 6.0%. This was achieved amid a challenging operating landscape in our key markets. This was attributed to the absence of the RM152bil one off gain from the sale of 50% of CIMB Securities International in 1Q18 as well as lower bancassurance and wealth management fees, partially offset by a 4.3% YoY growth in net interest income on the back of a 7.6% loans growthIts operating expenses rose 7.5% YoY from incremental investments and Forward23-related expenses, resulting in the group’s cost-to-income ratio (CIR) registering at 55.3% in 1Q19. The loan to deposit ratio (LDR) stood at 91.4%, compared to 89.7% as at end-March 2018.Its gross impairment ratio stood at 3.0% as at end-March 2019, with an allowance coverage of 103.5%. The group’s CIR stood at 55.3% compared with 49.8% in 1Q18 from higher operating expenses and lower revenues.The group’s net interest margin was lower at 2.48% due to spread compression in Malaysia and Thailand.As at March 31, CIMB Group’s total capital ratio stood at 16.2% while the Common Equity Tier 1 (CET1) capital ratio stood at 12.8%.

Source: The Star May 29, 2019 05:57 UTC