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CIMB Group Holdings on Wednesday reported that its net profit contribution from its Singapore operation was 121 per cent higher at RM137 million (S$44.3 million), compared to a year ago.
Growth was on the back of improved revenues and lower loan loss provisions as regional economic conditions improved.
The Malaysian bank unveiled a record quarterly net profit of RM1.18 billion for the first quarter of 2017, with net earnings per share at 13.3 sen.
"Our main business units are gaining traction, with cost management initiatives continuing to show progress and asset quality showing sustained improvement," said Zafrul Aziz, group chief executive, CIMB Group.
"Better capital and balance sheet management has brought about more focused growth, improved margins, a healthier CASA (current account, savings account) ratio and a strengthened capital position," he added.
The group's Q1 2017 operating income grew 17.1 per cent from a year ago to RM4.36 billion, largely driven by a 32.3 per cent growth in non-interest income in line with improved capital market activity. Net interest income rose 11.5 per cent from loans growth and improvement in net interest margin.
The latter improved to 2.72 per cent during the quarter from better liability management in Indonesia, Thailand and Singapore.
CIMB said that it will continue to keep a tight rein on cost, and strive to enhance operating income while expecting improvement in asset quality.
"Looking ahead, the group is cautiously optimistic for the rest of 2017, with more stable economic conditions, increased regional activity, improved capital markets and declining provisions across our key geographies. The group is currently on track to achieve its key financial targets for 2017," said Mr Zafrul.