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Maybank, CIMB see sustained growth, higher profits in 1Q
Malaysian Reserve
25 May 2012
Color
Corporate Malaysia
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1,4
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English
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ANUJA RAVENDRAN
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Daily (EM)
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Maybank, CIMB see sustained
growth, higher profits in 1Q
Malaysia's top 2 banks
ride out challenging
economic slowdown with
favourable performances
by ANUJA RAVENDRAN
DESPITE the challenging economic EPS of 13.6 sen while revenue rose
environment, two of Malaysia's lead­ 18.4% to RM3.3 billion.
In a statement yesterday, May­
ing banks posted a double­digit rise
in their net profits for the period on bank's chairman Tan Sri Megat Za­
continued growth in their business haruddin Megat Mohd Nor said the
segments.
Malaysia's largest lender, Malayan
Banking Bhd (Maybank), recorded a
17.9% jump in net profit for its first­
quarter ended March 31,2012 (1Q12),
at RM1.3 billion while the country's
second­largest bank, CIMB Group
Holdings Bhd, saw net profit rise
bank's strong growth in profitability
is a reflection of the momentum the
bank has been building over the last
few years as it expanded its regional
footprint.
Maybank said it recorded strong
improvement in performance at Bank
10.3% to RM1.01 billion for its 1Q Internasional Indonesia this quarter
ended March 31,2012.
Maybank attributed the better
performance to sustained revenue
growth across all business pillars led
by strong revenue increase in invest­
ment banking, corporate banking,
international banking and global
markets operations.
CIMB, meanwhile, said the rise in
with a 15.1% rise in revenue to 1.8 tril­
lion rupiah (RM602.39 million) and a
rise in net profit to 267 billion rupiah.
The results also include results
from Kim Eng Holdings which was
not a part of Maybank in the previ­
ous corresponding quarter, it said.
SEE P4 COLl
ETP reflected in biz
profits was partly due to the outper­
formance of its regional businesses. from Pi Maybank, CIMB
The favourable results were on the
Maybank's president and
back of weaker gross domestic prod­ chief executive officer Datuk
uct (GDP) growth of 4.7% for Malay­ Seri Abdul Wahid Omar,
sia in the 1Q12 and a 20% drop in meanwhile, said that May­
bank's diversified markets give
exports.
Maybank's earnings per share it the ability to mitigate the im­
(EPS) for the quarter was 17.63 sen pact of the global economic
while its revenue increased 29.8% or
RM6.7 billion. CIMB recorded an
slowdown.
"In Malaysia we are seeing
the traction from the Economic
Transformation Programme as
reflected in our corporate
banking segment," he said in
the statement.
CIMB Group chief executive
Datuk Seri Nazir Razak, in a
press release yesterday said the
year had started well for the
bank driven by outperform­
ance at the regional corporate
banking and its Treasury Mar­
kets division. CIMB Niaga, the
bank's Indonesian operations
sustained high growth mo­
mentum, he added.
It recorded a 1Q12 net profit
of 937 billion rupiah, a 28.7%
growth and a return on aver­
age equity of 20% due to strong
loans growth, substantially
higher non­interest income
from market operations offset
by higher overhead expenses,
and pre­emptive provisions.
For the quarter, Nazir said
CIMB maintained a moderate
growth momentum with total
assets and net loans increasing
by 14% and 12% respectively.
Maybank, meanwhile, said
loans grew moderately at 6.1%
on an annualised basis during
the quarter.