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Malaysia's CIMB Group posts YOY decline in Q1 profit

CIMB Group Holdings Bhd. posted a year-over-year decline in profit for the quarter ended March 31.

The Malaysia-based group on May 29 reported a first-quarter consolidated profit attributable to owners of 1.19 billion ringgit, down from 1.31 billion ringgit in the prior-year period. Basic EPS fell to 12.46 sen from 14.15 sen.

The group attributed the decline in profit to lower operating income, which was driven by lower noninterest income, given the absence of a one-off gain recorded in the first quarter of 2018, as well as lower bancassurance and wealth management fees.

Net interest income for the quarter increased to 2.46 billion ringgit from 2.42 billion ringgit, while income from Islamic banking operations rose to 708.8 million ringgit from 590.9 million ringgit.

The group's net interest margin for the quarter was 2.48%, compared to 2.57% in the prior-year quarter.

Operating income dropped to 4.17 billion ringgit from 4.30 billion ringgit. Profit before expected credit losses fell to 1.86 billion ringgit from 2.16 billion ringgit.

Expected credit losses on loans, advances and financing amounted to 300.0 million ringgit, down from 401.3 million ringgit in the prior-year period.

The group's gross impairment ratio came to 3.0% as of March 31, compared to 3.2% at the end of March 2018.

As of the end of March, the total capital ratio of CIMB Bank Bhd., the group's unit, came to 17.943%, while its Tier 1 ratio and common equity Tier 1 ratio were 13.351% and 11.963%, respectively. As of Dec. 31, 2018, the banking unit's total capital ratio, Tier 1 ratio and common equity Tier 1 ratio were 19.035%, 14.342% and 12.914%, respectively, prior to deducting proposed dividends, and 18.351%, 13.659% and 12.230%, respectively, after deducting proposed dividends.

As of May 28, US$1 was equivalent to 4.18 Malaysian ringgit.