CIMB Niaga Reported Rp3,402 Billion Operating Income in First Quarter 2015
Jakarta: PT Bank CIMB Niaga Tbk (CIMB Niaga; IDX: BNGA) today reported an unaudited consolidated operating income of Rp3,402 billion, representing a 0.7% year-on-year (YoY) growth, with a corresponding net profit of Rp83 billion for the three months ended 31 March 2015, translating to an earnings per share (EPS) of Rp3.29.
Net interest income improved 10.8% YoY on the back of 9.6% growth in gross loans and steady net interest margins. However, the growth in operating income was partially offset by a 29.4% YoY decline in non-Interest income, which was impacted by weaker treasury market activity as well as the new bancassurance regulations which came in effect in March 2014.
The lower YoY net profit came about from higher levels of provisions and an 8.8% increase in operating expenses, in tandem with the Indonesian inflation rate of 8.4% for 2014.
Vice President Director of CIMB Niaga, D James Rompas said, “Despite the challenging operating environment, our 1Q15 operating income continued to grow well, as reflected in a higher net interest income of 10.8% YoY. Nevertheless, asset quality remains a challenge given the economic conditions, volatile Rupiah and softer commodity prices. In line with our conservative standards of provisioning, we continue to increase recognition of impaired loans and have improved our loan loss coverage ratio from 98.8% in March 2014 to 102.6% in March 2015."
CIMB Niaga's gross loans expanded 9.6% YoY to Rp176.5 trillion as at 31 March 2015. Corporate loans grew by 16.3% YoY to Rp55.5 trillion, Micro Small Medium Enterprise (MSME) loans recorded a 10.9% YoY growth to Rp35.3 trillion, while Consumer loans grew by 6.6% YoY to Rp50.5 trillion. Commercial loans posted a 3.3% YoY growth to Rp35.1 trillion.
Within the loan book, Personal Loans expanded the strongest, growing 33.2% YoY to Rp2.3 trillion, while Credit Cards loans increased 32.0% YoY to Rp5.4 trillion. The number of cards increased to 1.8 million or 11.2% YoY. Within MSME loans, Micro Finance posted a 30.2% YoY growth to Rp3.1 trillion as at 31 March 2015.
CIMB Niaga's third-party deposits grew 12.5% YoY to Rp181.6 trillion as at 31 March 2015. Total CASA increased 9.1% YoY to Rp78.9 trillion, with Current Accounts and Savings Accounts contributing Rp38.0 trillion (+5.2% YoY) and Rp40.9 trillion (+13.0% YoY) respectively.
For syariah banking, CIMB Niaga's Islamic Business Units (CIMB Niaga Syariah) total financing stood at Rp6.7 trillion with third-party deposits of Rp7.3 trillion as at 31 March 2015.
“We expect our performance will improve in the second quarter of the year in line with the stabilization of macroeconomic indicators, and CIMB Niaga will continue stance on adopting a measured and moderate asset growth trajectory while maintaining tighter cost controls and focus on asset quality,” James added.
Despite a challenging operating environment, CIMB Niaga maintains its Capital Adequacy Ratio (CAR) at 16.5% as at 31 March 2015.
To support its business growth, CIMB Niaga continues to improve customer experience by offering a full range of products and services through 944 network as at 31 March 2015 (including 20 mobile branches). The nationwide network operates 3,288 automated teller machines (ATMs), 701 cash deposit machines (CDMs) and 201 self-service terminals (SSTs). As at 31 March 2015, the number of Digital Lounges has increased to 21. Digital Lounge offers a range of banking services and facilities: from ATM to cash deposit machine, CIMB Clicks (internet banking) channel to touch-screen monitor with a video banking officer standing by to assist customers with their transactions. Combining the latest technology, modern-style decor and fancy music, the place perfectly suits the taste of those who feel young at heart.
Branchless banking supports business growth
CIMB Niaga continues to optimise the most advanced technologies in developing digital features for its branchless banking services, including upgrading its core banking system to support future business growth.
As at end of March 2015, around 84.3% of the total transactions made at CIMB Niaga were through branchless banking channels such as CIMB Clicks, Go Mobile and the innovative Rekening Ponsel (mobile wallet).The number of CIMB Clicks users grew by 29.3% YoY, reaching over 1.1 million active users while Go Mobile reached 918,000 users, an increase of 52.2% YoY. In addition, the number of Rekening Ponsel users increased by 121.0% YoY to 800,000.
In the first quarter of 2015, CIMB Niaga received various awards including "Excellence in Provision of Literacy & Education Award‟ in the event of The 7th Annual Global CSR Summit and Awards 2015. Innovative product Rekening Ponsel also successfully achieved top position in Digital Brand of The Year 2015 for electronic money (e-money) category, based on survey of Isentia and Infobank research bureau.