30 October 2015
JAKARTA. PT Bank CIMB Niaga Tbk (“CIMB Niaga”; IDX: BNGA) today reported an unaudited consolidated Business As Usual (“BAU”) net profit of IDR442 billion in the third quarter of 2015 (“3Q15”), a 375.3% increase quarter-on-quarter (“Q-o-Q”) from IDR93 billion in the second quarter of 2015 (“2Q15”). The BAU net profit excludes the exceptional expense of IDR471 billion from the Mutual Separation Scheme (“MSS”) in 3Q15. For the nine-month period ended 30 September 2015 (“9M15”), CIMB Niaga recorded a BAU net profit of IDR618 billion and translating to a BAU earnings per share (“EPS”) of IDR24.60.
The 9M15 operating income grew 4.8% underpinned by a 9.5% year-on-year (“Y-o-Y”) growth in net interest income but partially offset by a 13.3% Y-o-Y decline in non-interest income. The 9M15 net profit was lower Y-o-Y due to a 163.6% Y-o-Y increase in provision expenses on the back of weaker economic conditions and an increasingly challenging operating environment but the 3Q15 provisions have improved gradually over the past two quarters. The gross Non Performing Loan (“NPL”) ratio improved to 3.17% as at 30 September 2015, compared to 3.35% as at the same period a year ago as a result of sales of asset to an affiliated company of CIMB Group. CIMB Niaga’s Loan Loss Coverage (“LLC”) increased to 120.96% as at 30 September 2015 from 82.89% a year ago.
President Director of CIMB Niaga, Tigor M. Siahaan said, “We continued to grow our assets selectively and are closely monitoring asset quality. The sustained top line growth as reflected by the 9.5% Y-o-Y growth in net interest income, improvement in provision levels coupled with the government’s economic policy packages that aim to boost the economic growth of Indonesia provide a cautiously optimistic view of our business direction going forward. We see opportunities and will place added focus on the consumer and small medium enterprise segments in a bid to improve our performance and boost earnings growth. We are conservative in this environment and have increased Loan Loss Coverage (“LLC”) to 120.96% to ensure adequate reserves.”
With total assets of IDR244.29 trillion as at 30 September 2015, representing a 7.3% Y-o-Y increase, CIMB Niaga maintained its position as Indonesia's fifth largest bank by assets. Total gross loans increased 7.2% Y-o-Y to IDR178.89 trillion as at 30 September 2015 driven largely by a 15.9% Y-o-Y growth in corporate loans, 5.4% Y-o-Y growth in consumer loans and 4.9% Y-o-Y growth in Micro Small Medium Enterprise (“MSME”) Banking while commercial loans remained flat Y-o-Y.
Total third party deposits stood at IDR185.72 trillion, an increase of 11.3% Y-o-Y as at 30 September 2015 which was attributed to a 15.7% Y-o-Y growth in Current Account and Savings Account (“CASA”) and resulting in a 182 basis point (“bps”) Y-o-Y increase in CASA ratio to 47.66%. The Loan to Deposit Ratio (“LDR”) was lower at 94.93% at the end of September 2015 compared to 98.51% at the same period last year. Net Interest Margin (“NIM”) declined 8 bps Y-o-Y to 5.19% at the end of September 2015.
As at the end of September 2015, around 94% of the total banking transactions by Consumer customers were made through branchless banking channels such as CIMB Clicks, Go Mobile, ATMs and the innovative Rekening Ponsel (mobile wallet). The number of CIMB Clicks active users grew by 25.2% Y-o-Y to 1.2 million, Go Mobile users grew by 45.5% Y-o-Y to 1.1 million and Rekening Ponsel users increased by 103.2% Y-o-Y to 1.2 million as at the end of September 2015. As part of the strategy to become a leading digital bank in Indonesia, CIMB Niaga recently began collaborating with MasterCard Indonesia to launch OctoPay, a secure and reliable online banking service through Facebook.
In the Sharia Banking segment, CIMB Niaga's Islamic Business Unit’s (“CIMB Niaga Syariah”) total financing stood at IDR6.91 trillion (+17.1% Y-o-Y) with third-party deposits of IDR7.85 trillion (+60.9% Y-o-Y) as at 30 September 2015.
CIMB Niaga’s Capital Adequacy Ratio (“CAR”) stood at 16.01% as at 30 September 2015.
To support its business growth, CIMB Niaga continues to improve customer experience by offering a full range of products and services through 909 network channels (including 20 mobile branches) as at 30 September 2015. The nationwide network operates 3,366 automated teller machines (“ATMs”), 725 cash deposit machines (“CDMs”) and 220 self-service terminals (“SSTs”). As at 30 September 2015, the number of digital lounges is 22.
In the nine-month period ended 30 September 2015, CIMB Niaga received various awards including innovative product Rekening Ponsel which successfully achieved top position in Digital Brand of The Year 2015 for the electronic money (e-money) category, based on the survey conducted by Isentia and Infobank research bureau. In The Asian Banker Excellence in Retail Financial Services Awards 2015 held by The Asian Banker, CIMB Niaga took home two prestigious awards: Best Digital Banking Initiative (Digital Lounge) and Best Credit Card Product (AirAsia Credit Card). Properti Indonesia magazine named CIMB Niaga "The Innovative Home Loan Bank", while Indonesia Property Watch, partnering with Property and The City, recognised the bank as the Best Supporting Bank in Property for Excellence, Service and Innovation category.