Consumer Banking Drives Growth At CIMB Group In 2012

Vanessa Doctor

27 February 2013

CIMB, the Malaysian financial services group, reported a 7.8 per cent rise in net profit year-on-year for 2012 on strong performances across its business lines.

Net profit for the 12 months to 31 December 2012 was at MYR4.35 billion ($1.4 billion), allowing it to declare total dividends of MYR1.7 billion. Net interest income grew 10.6 per cent, while non-interest income expanded by 12.7 per cent, it said in a statement.

Consumer banking operations were the largest contributors to group profit before tax at 41 per cent, from 36 per cent in 2011, it said.

The group's regional consumer bank profit before tax grew by 23.9 per cent year-on-year to MYR2.32 billion, the Malaysia and Singapore consumer operations expanded 17.7 per cent year-on-year, while consumer banking in Indonesia rose 45.9 per cent year-on-year. The Thai consumer business has yet to break-even and posted a loss of MYR3 million.

"We are excited about our stronger and enlarged business platform. We believe that we can sustain a net ROE of 16 per cent for 2013 on our higher capital and cost base, by driving revenues and efficiencies especially from our newly merged business units and enlarged investment banking operations," said Dato Sri Nazir Razak, group chief executive of CIMB Group.

CIMB Group is in talks to acquire Bank of Commerce in the Philippines and to establish branches in Laos, Shanghai and Hong Kong this year.