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CIMB on track to achieve double-digit growth target
The country’s fifth-largest lender by assets, Bank CIMB Niaga, announced Monday a 62 percent increase in net profit in the first half of this year, confirming the bank is on track to achieve double-digit growth in profits this year
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he country’s fifth-largest lender by assets, Bank CIMB Niaga, announced Monday a 62 percent increase in net profit in the first half of this year, confirming the bank is on track to achieve double-digit growth in profits this year.
“We did not officially revise our targets, but within the internal system, we see a better outlook in the near future, as first half figures have been strong,” CIMB Niaga vice president director Catherine Hadiman said on Monday.
With the first half’s promising results, Catherine said she is confident the growth target could be achieved.
CIMB Niaga’s net profit increased to Rp 1.13 trillion (US$126.56 million) in the first half of this year from Rp 696 billion in the same period last year, thanks to the 32 percent increase in operating revenue to Rp 1.5 trillion.
“The jump in operating revenue was partly due to the significant increase in lending,” said finance director Wan Razly.
The bank disbursed Rp 91.8 trillion in loans in the first half, up 26 percent compared to last year’s Rp 73.1 trillion, or faster than average national banks loan growth of 18.88 percent. CIMB Niaga officials attributed the increase in loans to the growth in demands from the corporate and retail sectors, which grew by 33 percent and 22 percent.
Deposits, meanwhile, grew by 29 percent to Rp 106.2 trillion in the first semester this year, from Rp 82.6 trillion last year.
“The increase in loans enables us to book one of the highest loan-to-deposit ratios (LDRs) compared to other banks,” president director Arwin Rasyid told reporters. CIMB Niaga’s LDR stands at 85.5 percent for the first six months of this year.
Data from Bank Indonesia showed that the average bank LDR in the first half of 2010 was 75.31 percent.
CIMB Niaga net interest margin (NIM), however, is higher than average banks’ 5.8 percent rate, or 6.73 percent. “Therefore, we’re going to maintain our NIM in the second half at around 6 percent,” Arwin said.
Gross non-performing loans remained manageable at 2.7 percent throughout the first semester, lower than national banks’ average NPL of 3 percent. (est)
