KUALA LUMPUR: CIMB Group Holdings Bhd Remains cautious in the near term about possible downside risks following the implementation of full lockdown measures by the government in an effort to contain the Covid-19 pandemic.
The cautious stance came despite the bank’s net profit for the first quarter ended March 31, 2021, increasing by about five times to RM 2.46 billion from RM 507.93 million in the same quarter a year ago. .
The turnover of CIMB group for the quarter reached 5.96 billion RMB compared to 4.14 billion RM a year ago.
“The strong performance seen in the first quarter is an early indicator of recovery, supported by the resilience of our underlying businesses.
“I am pleased to see positive momentum in all of our businesses, with particularly strong revenue growth in our wholesale and consumer banking businesses,” said Datuk Group CEO Abdul Rahman Ahmad.
“Our digital business also recorded healthy growth as CIMB Philippines reached 3.5 million customers while TNG Digital reached 15.5 million registered users,” he said in a statement.
He also highlighted the group’s cost optimization initiatives which enabled it to further reduce its cost / income ratio to 48.7%. “Cost remains a priority and we are pleased to see our cost initiatives gain traction. At the same time, we will continue to spend strategically in key areas such as technology to drive digitization across the bank. “
“Therefore, we maintain our previously announced key financial targets for fiscal 2021 (FY21), such as a return on equity of 6% to 7% and a cost-to-income ratio below 52%, although the loan growth target of 4%. -5% could be threatened given the uncertain economic recovery, ”added Abdul Rahman.
Total gross loans of CIMB group increased 0.7% yoy (yoy) to 366.6 billion RMB while total deposits increased 3.3% to 412.2 billion RM .
Its loan-to-deposit ratio stood at 88.9% as of March 21, down slightly from 89.0% in the previous quarter.
Its current account-savings account (CASA) continued to grow strongly with 19.8% year-on-year growth, with the CASA ratio strengthening to 42.3% as of March 21 from 41.3% as of December 20.
“While it may be too early to tell given the resurgence of the pandemic which is causing continued risk to the economic recovery, the positive start to fiscal 21 indicates that we are moving in the right direction on our Forward23 + strategic plan.
“The group also remains committed to continuing to provide support to borrowers who continue to be financially affected by the pandemic.
“We would like to stress that repayment assistance remains available to all affected borrowers and we encourage them to contact us to discuss any loan repayment assistance,” he said.