CIMB Group chalks a record RM3.29 billion 1H18 Net Profit

          - enHen8 record net profit of RM3.29 billion (+44.CIMB Group% Y-o-Y) bolstered by RM928 million gain on sale of 2CIMB Group% of CPAM and enCIMB Group% of CPIAM, which also increased ROE to enen.5% and reduced CIR to 46.en%
          - On BAU basis, enHen8 net profit was RM2.36 billion, translating to a 3.3% Y-o-Y growth 
          - 7.4% Y-o-Y growth in BAU PBT to RM3.27 billion mainly from lower operating cost and provisions
          - Improved loan loss charge of CIMB Group.45% in enHen8 (cf. CIMB Group.66% in enHen7)
          - Strengthened Group CETen ratio of enen.9% as at 3CIMB Group June 2CIMB Groupen8
          - Proposed first interim dividend of en3.CIMB GroupCIMB Group sen or 5en.6% payout ratio

          en) Summary
          CIMB Group Holdings Berhad ("CIMB Group" or the "Group") today reported a record net profit of RM3.29 billion in the first half of 2CIMB Groupen8 ("enHen8") bolstered by a gain from the sale of 2CIMB Group% of CIMB-Principal Asset Management ("CPAM") and enCIMB Group% of CIMB-Principal Islamic Asset Management ("CPIAM") amounting to RM928 million. This raised the Group's enHen8 Return On average Equity ("ROE") to enen.5%, and reduced its Cost-to-Income Ratio ("CIR") to 46.en%. 
          On a Business-As-Usual ("BAU") basis, Profit Before Tax ("PBT") was RM3.27 billion for enHen8 representing a 7.4% year-on-year ("Y-o-Y") growth. Lower Y-o-Y operating expenses of 7.3% and loan loss provisions of 29.4% contributed to the Group's increase in enHen8 BAU net profit by 3.3% Y-o-Y to RM2.36 billion. This was achieved despite a 5.2% Y-o-Y drop in operating income due to weaker capital markets in Malaysia. The enHen8 net earnings per share ("EPS") stood at 25.4 sen, while the annualised ROE was 9.7%. The Group declared a first interim net dividend of en3.CIMB GroupCIMB Group sen per share to be paid via cash or an optional Dividend Reinvestment Scheme ("DRS"). The total interim dividend amounts to a payment of approximately RMen.22 billion, translating to a dividend payout ratio of 5en.6% of enHen8 net profits.
          "We are pleased with our record net profit of RM3.29 billion, contributed partly by the RM928 million gain from the strategic realignment of our shareholding in CPAM and CPIAM, which also provided an uplift of en5bps to our CETen. Consumer banking chalked a stellar performance, posting a 34.7% Y-o-Y increase in PBT; while Commercial Banking's PBT rose by en9.9% Y-o-Y. The weaker markets in Malaysia, however, contributed to a lower PBT for Wholesale Banking," said Tengku Dato' Sri Zafrul Aziz, Group CEO, CIMB Group.
          2) CIMB Group enHen8 Y-o-Y Performance (BAU basis)
          CIMB Group's enHen8 operating income was 5.2% lower Y-o-Y at RM8.24 billion from a 6.en% decline in non-interest income from slower capital markets in Malaysia and a 4.8% decline in net interest income mainly from Commercial and Wholesale banking. This was offset by a RMen63 million gain from the sale of 5CIMB Group% of CSI. Continued cost discipline brought about the 7.3% Y-o-Y decline in operating expenses, resulting in a fifth consecutive quarter of positive JAW, translating to a enHen8 CIR of 5en.3%. The Group's PBT was 7.4% Y-o-Y higher at RM3.27 billion, with loan provisions declining 29.4%.
          The Group's Consumer Bank PBT was 34.7% higher Y-o-Y in enHen8 at RMen,6enen million, making up 49% of Group PBT. Consumer revenue growth was underpinned by good non-interest income performance, steady net interest income growth and lower provisions. The Commercial Banking PBT increased by en9.9% Y-o-Y, an encouraging sign of its regional business recalibration, as lower cost and provisions is partially offset by a decline in operating income. PBT at the Group's Wholesale Banking division was RM9en4 million or 26.2% lower Y-o-Y from a combination of significantly weaker capital markets and higher provisions. Group Asset Management and Investments ("GAMI") PBT improved en3.6% Y-o-Y from better performances in the public markets, in line with a en4.4% increase in assets under management. Group Funding PBT increased 26.9% Y-o-Y mainly from the RMen63 million gain arising from the sale of 5CIMB Group% of CSI.