CIMB Group's Q2 pre tax profit falls to RM883.74m
Published on: Saturday, August 29, 2015
Kuala Lumpur: CIMB Group's pre-tax profit for the second quarter (Q2) ended June 30, 2015 fell to RM883.74 million from RM1.28 billion in the same period last year.Revenue, however, rose to RM3.83 billion during the quarter from RM3.41 billion previously.Group Chief Executive Officer Tengku Datuk Zafrul Tengku Abdul Aziz, said the group posted a respectable first half 2015 (1H15) financial performance in an increasingly challenging operating environment on the back of continued quarter-on-quarter growth.
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"Our core banking operations continue to make positive headway particularly in consumer and wholesale banking across the region," he told a media briefing on the group's results here Friday.In 1H15, the group's net profit stood at RM1.22 billion equivalent to a net earnings per share of 14.4 sen. Non-Malaysian pre-tax profit contributions were lower at 22 per cent in the 1H15 from 35 per cent in the same period last year, principally due to the 87.4 per cent year-on-year decline in Indonesia's pre-tax profit to RM93 million from lower CIMB Niaga's earnings.Thailand's pre-tax profit contribution declined 18.4 per cent y-o-y to RM102 million, following increased provisions in 1H15.
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Meanwhile, total pre-tax profit contribution from Singapore grew 36.9 per cent to RM219 million as both of the banks and securities operations performed better.On outlook for the remaining of the year, Zafrul said, the second half performance was expected to be better than the 1H15.
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Moving forward, he said, the bank was on track in recalibrating its organisation to be leaner and more efficient. Zafrul said the Malaysian operations would remain robust, but the group was mindful of potentially slower domestic consumption.He said CIMB Singapore continued to perform well as its businesses expanded while economic conditions might give rise to some challenges at CIMB Thai. As for CIMB Niaga, asset quality concerns would remain a factor on the back of continued economic uncertainty, he said. Meanwhile, CIMB Group is set to announce the new chief executive officers (CEOs) for CIMB Islamic and CIMB Bank by end-September and within the year respectively, said."We have started the process of looking for their replacements and we hope to announce in due course. The process is still on going."We don't have a timeline (to finalise the candidates, but the sooner the better," he said.He said the group expected to finalise the CEO for CIMB Islamic earlier than the CEO for CIMB Bank.On whether the empty chairs would give impact on the group's business, he said, "No. Because as a bank, we are very much an institution where we have people in place (to run the business)."Tengku Zafrul said the group had shortlisted several potential candidates, comprising both internal and external sources for the position in CIMB Islamic.Stay up-to-date by following Daily Express’s Telegram channel.
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