KUALA LUMPUR: CIMB Group Holdings Bhd posted higher net profit in the first quarter ended March 31, 2018 on lower operating expenses and a decline in loan loss provisions.It announced on Wednesday its net profit rose 10.6% to RM1.30bil from RM1.18bil. Consumer banking, however, had a great start, posting a 51.2% year-on-year profit before tax growth.“Our capital position is solid even after adoption of MFRS9, with a CET1 of 11.7%. Group funding PBT increased 50.7% on-year from the gain arising from the sale of 50% of CSI.Non-Malaysia PBT contribution to the group declined to 31% in Q1, FY18 compared to 34% in 1Q17.Indonesia’s PBT decreased 6.5% on-year to RM273mil. However, excluding forex translation effects, Indonesia’s PBT expanded 7.7% on-year in line with CIMB Niaga’s improving performance.Thailand's PBT contribution of RM108mil was a 5.9% on-year increase due to lower provisions.Total PBT contribution from Singapore was 10.9% lower on-year at RM122mil from weaker treasury and markets.CIMB Group's total gross loans (excluding the bad bank) grew by 0.5% on-year (+5.3% excluding forex effects), while total deposits were 2.7% higher on-year. The group’s loan to deposit ratio (LDR) stood at 89.7% compared to 91.7% in 1Q17.The group’s gross impairment ratio stood at 3.2% as at end-March 2018, with an allowance coverage of 105.3%.The group’s cost-to-income Ratio improved to 49.8% compared with 52.6% in 1Q17, in line with continued cost management.

Source: The Star May 30, 2018 06:56 UTC