Malaysia’s CIMB Islamic posts 48% rise in quarterly profit as Group earnings fall
Malaysia’s CIMB Islamic earned 47.9% increase in profit before tax for the third-quarter as its overall Group saw its own PBT drop by 10.06%.
CIMB Islamic earned 388.24 million ringgit ($92.95 million) in profit before tax for the three months ending September 30 compared to 262.51 million ringgit for the same period last year, it reported in a bourse filing on Friday (Nov 22).
CIMB Group overall posted 1.34 billion ringgit in PBT for the third-quarter, down from 1.49 billion ringgit for the same July-September period in 2018.
The Group said consumer banking profits before tax dropped by 11.4% year-on-year as operating income growth was offset by higher operating expenses and provisions.
Its Shariah-compliant subsidiary saw its income from investment of depositors' funds grow by 22.9% to reach 1.07 billion ringgit, while expected credit losses on financing rose to 8.47 million ringgit from a loss of 33.65 million ringgit year-on-year.
CIMB Islamic's assets grew by 7% to 104.37 billion ringgit from December 31, accounting for around 18.35% of the Group's 568.83 billion ringgit in assets.
Overall, the Group's assets grew by a slower 6.5%.
Net financing for the Islamic subsidiary accounted for 76.48 billion ringgit, from 70.62 billion ringgit at the end of last year.
Around 70%, or 53.37 billion ringgit, of its financing assets were based on tawarruq.
“CIMB Islamic’s gross financing assets rose 8.5% YoY to RM76.9 billion, accounting for 21.3% of the Group’s total gross loans,” the bank said in a statement.
On the liabilities side, customer deposits stood at 84.56 billion ringgit from 75.93 billion ringgit.
“The Bank’s Islamic-First strategy will continue to drive growth momentum in financing as well as capital market activity, particularly with expected pick-up in sukuk issuances,” said the bank.
It said it remains cautious on prospects for the rest of 2019 given the backdrop of uncertain regional and global economic conditions.
($1 = 4.1767 Malaysian ringgit)
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