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Private lender CIMB Niaga sees Q1 net profit soar 138 percent
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CIMB Niaga president director Tigor M. Siahaan (center) poses with the lender's executives and brand ambassadors during the bank's new brand promise launch event in Jakarta on April 5. (JP/Prima Wirayani)
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rivate lender CIMB Niaga, a part of Malaysian financial institution CIMB Group, saw its net profit soar by almost 138 percent year-on-year (yoy) to Rp 640 billion (US$48 million) during the first three months of 2017.
The strong growth is supported by increasing net interest income (NII) by 9.1 percent yoy to Rp 3.1 trillion as of March, and lower loan-loss provision, according to an official statement released on Thursday.
The publicly listed lender allocated Rp 1.08 trillion of provision expenses as of March, down by 19.5 percent from Rp 1.34 trillion set aside during the same period last year, its financial data shows.
Its non-interest income, meanwhile, stood at Rp 716 billion.
"As we continue efforts to rearrange our balance sheet and implement various initiatives to optimize capitalization, we expect our financial performance to be stronger in 2017 supported by gradually improving economy and assets quality," CIMB Niaga president director Tigor M. Siahaan in the statement.
(Read also: CIMB Niaga launches new brand promise)
The country's fifth largest bank by assets recorded Rp 175.98 trillion of outstanding loans as of March, up 2.9 percent yoy.
Its gross non-performing loan (NPL) ratio, meanwhile, slightly rose to 3.91 percent from 3.9 percent recorded in last year's first quarter. The net NPL ratio also increased to 2.11 percent from 1.91 percent.
CIMB Niaga, which was recently named a BUKU IV bank — the highest lender category with a required minimum capital of Rp 30 trillion — collected as much as Rp 176.09 trillion in third-party funds as of March, up 1.9 percent yoy. (hwa)
