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CIMB Group Q2 profit drops 23.8% YOY

CIMB Group Holdings Bhd.'s second-quarter profit attributable to owners of the parent dropped 23.8% to 1.51 billion Malaysian ringgit from 1.98 billion ringgit in the year-ago period, as gains from asset sales plunged year over year.

Basic EPS declined to 15.60 sen from 21.29 sen in the year-ago quarter.

The group's net interest income increased to 2.38 billion ringgit from 2.37 billion ringgit. Income from Islamic banking operations grew to 753.2 million ringgit from 671.2 million ringgit. Net noninterest income rose to 1.10 billion ringgit from 886.7 million ringgit.

Gains from the sale of subsidiaries, joint ventures and associates plunged to 236.1 million ringgit from 938.4 million ringgit in the year-ago quarter. In the second quarter of 2018, the group had sold 10% and 20% stakes in two joint ventures to its U.S.-based partner.

Expected credit losses on loans, advances and financing declined to 329.0 million ringgit from 344.4 million ringgit.

The group's net interest margin was 2.46% as of the end of June, down from 2.53% in the year-ago period. Its gross impaired loans ratio improved to 3.1% from 3.2% in the year-ago period. The ratios for the 2018 period exclude the gains on the asset sales.

As of June 30, the group's total capital ratio clocked in at 16.6%, while its common equity Tier 1 ratio stood at 12.9%.

The group declared a first interim net dividend of 14 sen per share, compared to 13 sen per share in the prior year.

As of Aug. 28, US$1 was equivalent to 4.21 Malaysian ringgit.