CIMB rakes in record profit
CIMB Group Holdings Bhd (1023), the country's second largest lender, has posted a record net profit of RM3.52 billion in 2010 but is cautious over its prospects this year.
The RM3.52 billion was 25 per cent more than the RM2.81 billion net profit registered a year ago.
This was driven by the group's investment banking and CIMB Niaga, its Indonesian unit.
Group revenue rose 12.7 per cent to RM11.8 billion from RM10.5 billion in the previous year.
Group chief executive Datuk Seri Nazir Razak described 2010 as a good year but was cautious over its outlook in the current year.
Nazir anticipates different conditions in the region with slower economic growth, rising interest rates due to increasing inflation, and more volatile capital markets due to risks from Middle East crisis and potential hikes in oil price.
"Nevertheless, we are setting ourselves a higher returns on equity (RoE) target of 17 per cent for 2011.
"We will look to new areas for strong growth, such as regional transaction banking, CIMB Singapore and CIMB Thai," Nazir told a media conference in Kuala Lumpur yesterday.
CIMB will reward shareholders with a record dividend payout amounting to RM1.93 billion, or 26.08 sen per share.
During the year under review, the CIMB group's net earnings per share was 49 sen, while net RoE of 16.3 per cent exceeded its target of 16 per cent.
The group's total gross loans expanded 12.4 per cent from a year ago, while its total deposits grew 11.6 per cent.
Its overall net interest margins improved to 3.32 per cent from 3.28 per cent in 2009.
The group's leverage and gearing stood at 113.8 per cent and 17.8 per cent respectively.
For the fourth quarter ended December 2010, CIMB's net profit rose 9.3 per cent to RM878 million on the back of 18.5 per cent revenue growth to RM3.2 billion.
Nazir said CIMB is targeting to list in Thailand in the third quarter of this year, while in Indonesia, the listing will take place when the authorities there have come out with clearer listing rules.
On whether there will be more acquisitions this year, Nazir said after making two last year, the group has its hand full to build up its regional franchise.
"Unless there is something very, very compelling, I would say no (acquisition)," he added.
CIMB Group has expanded to Indonesia and Thailand via acquisitions.
Asked if Bank Negara Malaysia decides to raise the Statutory Reserve Requirement (SRR) for banks, Nazir said: "We'll cross that bridge when we come to it."
He said if the SRR hike is minor, CIMB will not adjust its rates. However, it will be otherwise if the SRR increase is a major one.
Nazir did not disclose the amount of corporate deals it expects to handle this year, but said there are new sources of deals such as cross-border listing and public deals.
"Corporate activities in 2011 will be quite exciting, driven by the Economic Transformation Programme," he said, anticipating growth in corporate lending activities this year.
The RM3.52 billion was 25 per cent more than the RM2.81 billion net profit registered a year ago.
This was driven by the group's investment banking and CIMB Niaga, its Indonesian unit.
Group chief executive Datuk Seri Nazir Razak described 2010 as a good year but was cautious over its outlook in the current year.
Nazir anticipates different conditions in the region with slower economic growth, rising interest rates due to increasing inflation, and more volatile capital markets due to risks from Middle East crisis and potential hikes in oil price.
"Nevertheless, we are setting ourselves a higher returns on equity (RoE) target of 17 per cent for 2011.
"We will look to new areas for strong growth, such as regional transaction banking, CIMB Singapore and CIMB Thai," Nazir told a media conference in Kuala Lumpur yesterday.
CIMB will reward shareholders with a record dividend payout amounting to RM1.93 billion, or 26.08 sen per share.
During the year under review, the CIMB group's net earnings per share was 49 sen, while net RoE of 16.3 per cent exceeded its target of 16 per cent.
The group's total gross loans expanded 12.4 per cent from a year ago, while its total deposits grew 11.6 per cent.
Its overall net interest margins improved to 3.32 per cent from 3.28 per cent in 2009.
The group's leverage and gearing stood at 113.8 per cent and 17.8 per cent respectively.
For the fourth quarter ended December 2010, CIMB's net profit rose 9.3 per cent to RM878 million on the back of 18.5 per cent revenue growth to RM3.2 billion.
Nazir said CIMB is targeting to list in Thailand in the third quarter of this year, while in Indonesia, the listing will take place when the authorities there have come out with clearer listing rules.
On whether there will be more acquisitions this year, Nazir said after making two last year, the group has its hand full to build up its regional franchise.
"Unless there is something very, very compelling, I would say no (acquisition)," he added.
CIMB Group has expanded to Indonesia and Thailand via acquisitions.
Asked if Bank Negara Malaysia decides to raise the Statutory Reserve Requirement (SRR) for banks, Nazir said: "We'll cross that bridge when we come to it."
He said if the SRR hike is minor, CIMB will not adjust its rates. However, it will be otherwise if the SRR increase is a major one.
Nazir did not disclose the amount of corporate deals it expects to handle this year, but said there are new sources of deals such as cross-border listing and public deals.
"Corporate activities in 2011 will be quite exciting, driven by the Economic Transformation Programme," he said, anticipating growth in corporate lending activities this year.
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