September 1, 2021

It's Terrible! CIMB Group Records Billions In Net Profit Surge

 Local Stocks

It's Terrible! CIMB Group Records Billions In Net Profit Surge

By Team INTRADAY Published On 1 Sep 2021 12:20 PM



CIMB Group Holdings Bhd showed an increase in net profit in the second quarter ended June 30, 2021 of RM1.08 billion compared to RM277.08 million last year.

The company's revenue also jumped 20.9% to RM4.67 billion from RM3.86 billion in 2020 driven by strong operating income and low allocations.

The significant contribution of the RM1.16 billion revaluation profit from the separation of TNG Digital has driven CIMB to record a net profit of RM3.54 billion in the first half of 2021.

CIMB Group Chief Executive Officer Datuk Abdul Rahman Ahmad said the group's strong performance reflected the success of the Forward23+ strategic plan and the momentum of economic recovery.

Despite a slight decline in gross sales in the second quarter of 2021 following the resurgence of Covid-19 contagion, the group continued to benefit from a positive revenue recovery in the first half of 2021.

These factors are taken into account from the low base effect in the previous year supported by increased interest margins, low allocations within the group and a focus on ongoing costs.

The digital business saw strong momentum with TNG Digital's registered users jumping to 16.1 million, gaining an increase of 600,000 users in the second quarter of 2021.

He added that GO+, the investment offering available in the Touch ‘n Go eWallet application also reached 1.2 million investors in 3 months with total assets under management (AUM) of RM112 million as of June 2021.

Abdul Rahman said although the bank was performing strongly, it remained vigilant due to the potential risk of slower growth in the second half.