Thursday, 1 November 2012

MBB and CIMB in Indonesia


jan-sept 2012

GROSS NPL2.08%2.41%
NET NPL0.87%

Overall growth lifts Maybank Indonesian unit earnings

PETALING JAYA: Malayan Banking Bhd’s (Maybank) Indonesian banking unit –
PT Bank Internasional Indonesia Tbk (BII) – has recorded a 66% increase in net profit to
922 billion rupiah (RM293.8mil) for the nine months ended Sept 30.

The higher profit was due to solid growth across the bank’s core businesses,
improved asset quality including at the subsidiaries, as well as continuing overall operational improvements.

“The strong performance over these nine months has been underpinned by our determination to leverage on growth opportunities arising from Indonesia’s rapid economic expansion,” president commissioner BII and chairman of Maybank group, Tan Sri Megat Zaharuddin Megat Mohd Nor said in a statement.

For the period in review, BII booked strong loans growth of 22%,
with total loans increasing from 62 trillion rupiah in September 2011 to 75.9 trillion rupiah in September 2012.
Global wholesale banking loans, which include corporate and commercial loans accounted for 37% of total loans,
while SME and consumer loans contributed 28% and 35%, respectively.

Total deposits increased by 20% to 79.8 trillion rupiah as of Sept 30 against 66.7 trillion rupiah a year ago.
The consolidated loan to deposit ratio (LDR) stood at 94.26%, a marginal increase from 92.64% previously.

BII said the strong improvement in asset quality was reflected in its gross non-performing loans level (NPL)
improving to 2.08% from 2.54% a year ago, while net NPL improved to 0.87% from 1.37%.

During the period, BII’s net interest income improved 28% to 3.9 trillion rupiah
from 3.1 trillion rupiah a year earlier, while net interest margin improved to 5.88% from 5.53% previously.

BII’s fee-based income was maintained at a stable level of 1.6 trillion rupiah during the period under review.

“We are poised for further growth in profitability as we continue to focus in growing our core business segments,
while building capacity and capability, and developing our key assets being our talent,” said BII president director Datuk Khairussaleh Ramli.


CIMB Niaga profit rises

It achieves 30% increase in earnings driven by higher operating income

KUALA LUMPUR: CIMB Group Holdings Bhd's 97.9% indirect subsidiary in Indonesia, CIMB Niaga, has recorded a 30% increase in net profit to 3.10 trillion rupiah (RM986.6mil) for the nine-month ended Sept 30, from the previous corresponding period driven by an increase in total operating income.

This translates to earnings per share (EPS) of 123.42 rupiah, from 95.10 rupiah a year earlier.
Total operating income increased by 25% to 9.59 trillion rupiah as at Sept 30 from a year ago with corporate, commercial, and treasury operations being the largest contributors.

CIMB Niaga president director Arwin Rasyid said that Indonesia's relatively stable economy had a positive impact on the bank's performance, particularly in the disbursement of loans.

For the period under review, loans grew by 14% to 138.91 trillion rupiah from a year ago.
“The loans growth was contributed by commercial banking (including syariah), consumer banking, and corporate banking, which grew by 28%, 7%, and 5%, respectively on a year on year basis. They contributed 59.12 trillion rupiah, 38.95 trillion rupiah and 40.84 trillion rupiah to CIMB Niaga's total loan, respectively” said Arwin in statement yesterday.

A number of CIMB Niaga's businesses, Arwin said, showed impressive lending and financing growth.
These included personal loans, a product the bank introduced in May last year with such loans reaching 851 billion rupiah by end-September, up significantly by 325% from last year.

Another unit listing strong growth was the syariahfinancing business, which grew 117% to 6.13 trillion rupiah for the period under review.

“The catalyst to our syariah growth was the loan-to-value policy imposed on conventional banks,” Arwin said.

In addition, another product, rahn, has seen a significant growth of 174% to 85.68 billion rupiah through 77 outlets operated as at Sept 30.

While making the aggressive move to pursue profitable but safer asset classes, CIMB Niaga has successfully improved its asset quality, as reflected in the gross non-performing loan ratio of 2.41% as at Sept 30, down from 2.63% previously.
The bank also saw an increase in total deposits during this period.

The bank's deposits reached 146.18 trillion rupiah, a 16% increase from previously with the current account savings account increasing by 19% to 62.49 trillion rupiah.

The bank's financial ratios also showed improvements where CIMB Niaga's fee income ratio increased from 24.76% to 25.28%, while the cost to income ratio decreased from 49.17% to 47%.

Return on asset was at 3.19%, 30 basis points higher than 2.89% previously, while return on equity shareholder's fund rose to 20.98% from 19.58%.

With this achievement, CIMB Niaga continues to maintain its position as Indonesia's fifth largest bank by asset size.
The bank's total assets as at Sept 30 reached 190.62 trillion rupiah, up 20% from a year ago.

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