by LYDIA NATHAN / pic by TMR FILE

CIMB Group Holdings Bhd posted a net profit of RM2.46 billion for the first quarter of financial year ended March 31, 2021 (1QFY21), including a one-off revaluation gain of RM1.16 billion from the deconsolidation of TNG Digital Sdn Bhd.

Revenue for the quarter improved to RM5.96 billion from RM4.14 billion in the previous year’s corresponding period.

In a filing to Bursa Malaysia yesterday, the banking group noted it remains cautious in the short term due to the lockdown and increased number of Covid-19 cases.

For the quarter under review, the bank posted RM4.8 billion in net operating income, while its net interest income grew 8% to RM3.47 billion, largely driven by improved net interest margins in Malaysia and Indonesia.

Its improved cost-to-income ratio was at 48.7% as at March 21, 2021, attributed to continued stringent cost optimisation, which consequently saw its core re-provisioning operating profit rise to RM2.46 billion.

Group CEO Datuk Abdul Rahman Ahmad said the strong performance is an early indicator of recovery, underpinned by the resilience of the bank’s underlying business.

“I’m pleased to see positive momentum across all our businesses, especially with strong year-on-year income growth in our wholesale banking and consumer banking businesses. Our digital businesses also registered healthy growth, as CIMB Philippines reached 3.5 million customers, while TNG Digital achieved 15.5 million registered users.

“Our cost-optimisation initiatives also continue to bear fruit, as we were able to further lower our cost-to-income ratio to 48.7%. While it may be too early to tell, given the pandemic’s resurgence causing ongoing risk to economic recovery, the positive start to FY21 signals that we are moving in the right direction on our Forward23+ strategic plan,” Abdul Rahman said.

He said cost will remain a core focus while the bank continues to spend strategically in key areas such as technology to drive digitisation.