CIMB Group Holdings Berhad announced a core1 profit before tax of RM3.62 billion for the first half ended 30 June 2021 (“1H21”), compared to RM910 million in the first half ended 30 June 2020 (“1H20”). Core net profit was RM2.62 billion from RM785 million.
First half, core operating income grew to RM9.47 billion, up 18.3% from RM8.01 billion. Of this, net interest income (“NII”) grew by 14.8% to RM7.06 billion, largely driven by improved net interest margins (“NIM”) in Malaysia and Indonesia. Core non-interest income strengthened by 29.8% year-on-year to RM2.42 billion, driven by stronger treasury & markets and wealth management income despite slower momentum in 2Q21. The Group’s cost-to-income ratio improved to 47.5%, its lowest recorded CIR, despite a 1.2% increase in operating expenses to RM4.50 billion in 1H21. Accordingly, the Group’s core pre-provisioning operating profit strengthened to RM4.97 billion from RM3.57 billion YoY.
Overall, CIMB registered a reported net profit of RM3.54 billion in 1H21 which included a significant net contribution from exceptional items, primarily the one-off revaluation gain of RM1.16 billion from the deconsolidation of TNG Digital reported earlier in 1Q21. This was partially offset by RM258 million mainly related to the write-off and accelerated amortisation of intangible assets in 2Q21. Consequently, reported net profit, including exceptional items, declined quarteron-quarter (“QoQ”) from RM2.46 billion to RM1.08 billion. The Group’s capital remained strong with the CET1 ratio strengthening further to 13.4% as at Jun-21 from 12.9% as at Mar-21.
Dato’ Abdul Rahman Ahmad, Group Chief Executive Officer of CIMB Group, said, “The Group’s solid performance reflects the progress made in our Forward23+ strategic plan and momentum from economic recovery experienced earlier in 1Q21. Despite some tapering of topline growth in 2Q21 due to the resurgence of the pandemic across the region, the Group benefitted from positive earnings recovery in 1H21 after taking into account the low base effect from a year ago, driven by improvement in NIM, continued cost focus and lower provisions across the Group.”
“At the same time, we are heartened to see that our digital businesses continue to build momentum.
TNG Digital’s registered users increased to 16.1 million, adding 600,000 users in 2Q21 alone. GO+, the investment offering available in the Touch ‘n Go eWallet, has also reached 1.2 million investors within three months, with total assets under management (“AUM”) of RM112 million as at June 2021. Similarly, in the region, CIMB Philippines reached 3.9 million customers and a deposit book of RM1.10 billion, with 400,000 customers added in 2Q21.
As of mid-August 2021, CIMB Malaysia has provided financial payment relief assistance to around 480,000 individuals, SME and business banking customers. This assistance has an approval rate of virtually 100% and includes the current Payment Assistance Programme, Targeted Assistance Programme and Expanded Targeted Payment Assistance programme offered to customers in 2020, but excludes the blanket moratorium in March 2020. CIMB continues to provide support to borrowers who are financially affected by the pandemic. Repayment assistance remains available to all affected borrowers, and CIMB encourages all affected borrowers to reach out to the Bank
to discuss any loan repayment assistance
