CIMB 2Q18 profit up on stake sales

CIMB Group Holdings Bhd reported a net profit of RM1.98 billion for the second quarter of 2018 (2Q18), boosted by the proceeds from stake disposals in its asset management companies.

The banking group disposed of 20% stake in CIMB-Principal Asset Management Bhd (CPAM) and 10% in CIMB-Principal Islamic Asset Management Sdn Bhd (CPIAM) amounting to RM928 million, the lender said.

In May this year, the banking group announced the business realignment and stake sales in CPAM and CPIAM to Principal Financial Group.

Following the completion of the banking group realignment, Principal increased its shareholding to 60% in both CPAM and CPIAM. CIMB holds the balance of the stakes.

Revenue for country’s second biggest banking group based on assets for April-June period rose to RM4.86 billion from RM4.3 billion recorded during the same period a year ago.

CIMB declared a first interim net dividend of 13 sen per share to be paid via cash or an optional dividend reinvestment scheme.

The total interim dividend amounts to a payment of RM1.22 billion, translating to a dividend payout ratio of 51.6% of 1H18 net profits, the bank said in a statement to the bourse. — TMR