CIMB Bank Q4 net profit jumps on higher income, low provisions

[KUALA LUMPUR] CIMB Group Holdings Bhd, Malaysia's second largest bank by assets, reported on Thursday that its net profit for the fourth quarter more than tripled on the back of higher operating income and lower provisions.

The region's fifth largest lender by asset said net profit for the quarter, ended in December 2015, was 850 million ringgit (S$283 million) as compared with 252 million ringgit a year earlier.

CIMB Group CEO Zafrul Aziz told reporters that the bank was working towards starting their Vietnam operations by the end of 2016. "We will continue to see challenges in countries we are operating in. We expect performance to improve this year. We do not expect the numbers to contract, but expect slower growth (in loans and assets)," explained Zafrul.

The bank said provisions remain elevated from Indonesia and Thailand, which impacted the full-year net profit.

REUTERS