CIMB Niaga Reports 2015 BAU Consolidated Net Profit (Audited) of IDR856 Billion
24 February 2016
JAKARTA. PT Bank CIMB Niaga Tbk (CIMB Niaga; IDX: BNGA) reported a consolidated (audited) Business As Usual (“BAU”) net profit of IDR856 billion for the year ended 31 December 2015 (“FY15”), translating to a BAU earnings per share (“EPS”) of IDR34.07. The BAU net profit excludes the exceptional expenses of IDR571 billion from the Mutual Separation Scheme (“MSS”), recalibration of micro business and merging of the auto business. CIMB Niaga’s FY15 performance was impacted by the regional economic slow-down coupled with a challenging business environment.
FY15 operating income grew 3.6% underpinned by a 6.5% year-on-year (“Y-o-Y”) improvement in Net Interest Income (“NII”) premised upon a sound pricing structure, but partially offset by a 8.6% Y-o-Y decline in non-interest income in line with the weaker treasury market activity. FY15 net profit was lower due to a 54.7% Y-o-Y increase in provision expenses. CIMB Niaga’s Loan Loss Coverage (“LLC”) increased to 111.53% as at 31 December 2015 from 88.78% a year before.
President Director of CIMB Niaga, Tigor M. Siahaan said, “2015 was a challenging year for CIMB Niaga. However, our core businesses continued to grow well with the NII engine maintaining a steady 6.5% Y-o-Y growth, while our continued efforts in digital banking is reaping encouraging results evidenced by the 10.1% Y-o-Y growth in Savings Account balances. Through the CIMB Group’s T18 Recalibration Strategy launched in 2015, a number of steps were also taken to set a stronger foundation for CIMB Niaga’s further growth as well as to improve efficiency and scale. We will focus our 2016 priorities on asset selection, continued Current Account and Savings Account (“CASA”) growth, cost efficiency and asset quality management.”
With total assets of IDR238.85 trillion as at 31 December 2015, representing a 2.4% Y-o-Y increase, CIMB Niaga maintained its position as Indonesia's fifth largest bank by assets. Total gross loans were flat at IDR177.36 trillion as at 31 December 2015 as the Bank adopted a more prudent growth stance. Of total loans, corporate loans was the largest contributor at IDR56.95 trillion (32%), followed by consumer loans at IDR51.98 trillion (30%), commercial loans at IDR34.25 trillion (19%) and Micro Small Medium Enterprise (“MSME”) loans at IDR34.18 trillion (19%) accounted for the rest.
“We have merged PT CIMB Niaga Auto Finance (“CNAF”) with PT Kencana Internusa Artha Finance (“KITAF”) to create a powerhouse automotive financing entity with greater capacity to offer our customers a more comprehensive and varied portfolio of products and services. We have also begun the recalibration of our MikroLaju business to improve productivity,” Tigor added.
Total third party deposits stood at IDR178.53 trillion, an increase of 2.2% Y-o-Y as at 31 December 2015 which was attributed to a 6.6% Y-o-Y growth in CASA and resulting in a 194 basis point (“bps”) Y-o-Y increase in CASA ratio to 46.81%. The Loan to Deposit Ratio (“LDR”) was lower at 97.98% at the end of December 2015 compared to 99.46% at the previous corresponding period.
As at end 2015, 94.5% of the total banking transactions by Consumer customers were made through digital banking channels such as CIMB Clicks, Go Mobile, ATMs and Rekening Ponsel (mobile wallet). The number of CIMB Clicks active users grew by 22.3% Y-o-Y to 1.2 million, Go Mobile users grew by 42.1% Y-o-Y to 1.2 million and Rekening Ponsel users increased by 104.6% Y-o-Y to 1.4 million as at the end of last year. The bank also launched OctoPay, a secure and reliable online banking service through Facebook. “We have successfully completed the installation of a new core banking system which will help CIMB Niaga reinforce its aspiration of becoming the leading digital bank in Indonesia, and ensure that we are ready for the future,” Tigor said.
In the Sharia Banking segment, CIMB Niaga's Islamic Business Unit’s total financing stood at IDR7.28 trillion (+13.0% Y-o-Y) with third-party deposits of IDR7.58 trillion (+12.0% Y-o-Y) as at 31 December 2015.
CIMB Niaga’s Capital Adequacy Ratio (“CAR”) stood at 16.28% as at 31 December 2015.
“We expect Bank Indonesia to loosen its monetary policy in 2016 now that inflation appears to be under control and with economic growth showing positive indicators. This should gradually improve the economy along with continued government incentive programs and stimulus packages,” Tigor said.
To support its business growth, CIMB Niaga continues to improve customer experience by offering a full range of products and services through 826 network channels (including 20 mobile branches) as at 31 December 2015. The nationwide network operates 3,365 automated teller machines (“ATMs”), 715 cash deposit machines (“CDMs”) and 203 self-service terminals (“SSTs”). As at 31 December 2015, the number of digital lounges is 22.
Awards and Recognitions
In 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. At the end of last year, CIMB Niaga was awarded as Top 50 ASEAN Public Listed Companies and Top 3 Public Listed Companies from Indonesia based on ASEAN Corporate Governance Scorecard in 2015.
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