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CIMB Bank Q2 net profit rises YOY on lower impairments

CIMB Bank Bhd. reported a year-over-year increase in net profit for the second quarter to June 30, on the back of lower impairments.

The Malaysian lender's profit attributable to owners of the parent rose to 974.2 million ringgit, or 17.52 sen per basic share, from 944.9 million ringgit, or 17.87 sen per share, in the prior-year period, according to a recently-obtained report.

Net interest income for the quarter slipped to 1.63 billion ringgit from 1.72 billion ringgit, while income from Islamic banking operations grew to 590.5 million ringgit from 438.9 million ringgit.

The lender also posted allowances for impairment losses on loans, advances and financing of 136.8 million ringgit, down from 334.6 million ringgit in the prior-year quarter.

For the first half, the bank's profit attributable to owners fell year over year to 1.98 billion ringgit, from 2.05 billion ringgit. Basic EPS dropped to 35.68 sen from 38.84 sen.

Before deducting a proposed dividend, the bank's total capital ratio was 18.361% as of June 30, up from 17.153% at the end of June 2017. Its Tier 1 ratio stood at 13.731%, up from 13.424%, while its common equity Tier 1 ratio clocked in at 12.342%, up from 11.939%.

After deducting the proposed dividend, CIMB Bank's total capital ratio came in at 17.671% as of June 30, from 16.367% a year ago. Over the same period, its Tier 1 and common equity Tier 1 ratios stood at 13.041% and 11.652%, up from 12.638% and 11.153%, respectively.

The lender proposed a first interim dividend of around 19.80 sen per share, down from 23.90 sen per share in the prior-year period.

As of Aug. 31, US$1 was equivalent to 4.12 Malaysian ringgit.