CIMB 1Q Earnings Dip 9% Y-O-Y to RM1.19b on Lower Income, Higher Expenses
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CIMB Group Holdings Bhd net profit for the first quarter ended 31 March 2019 fell 9% year-on-year (y-o-y) to RM1.19 billion versus RM1.31 billion previously, on the back of lower operating income and higher expenses.
In a filing with Bursa Malaysia today, CIMB said revenue for the quarter slipped to RM4.17 billion from RM4.30 billion a year earlier.
It said earnings per share was 12.46 sen versus 14.15 sen previously. No dividend was declared.
In a statement accompanying the filing, CIMB group Chief Executive Officer Tengku Datuk Seri Zafrul Aziz said although earnings declined y-o-y, its quarter-on-quarter (q-o-q) performance improved amid a challenging operating landscape in its key markets.
“The q-o-q performance was supported by better-operating income in 1Q19, driven by stronger performances in Thailand and Singapore."
“Our ROE came in at 9.2%, and we are pleased that our CET1 strengthened to 12.8% while loan loss charge improved to 0.34%,” he said.
On its outlook, Zafrul said the banking group expects the rest of 2019 to remain challenging, amidst fresh trade tensions and other macroeconomic headwinds, coupled with tougher operating conditions in our major markets.
“However, we are confident that Forward23, our newly launched strategic growth plan, will accelerate growth and future-proof CIMB, particularly through investments in customer experience, our people and technology,” he said.
At the midday break, CIMB shed 0.39% or 2 sen to RM5.16 with 2.16 million shares done.