November 22, 2019 / 10:42 AM / 21 days ago

Malaysia's CIMB logs third straight fall in quarterly earnings

KUALA LUMPUR, Nov 22 (Reuters) - CIMB Group Holdings on Friday reported a 14.4% drop in third-quarter net profits, a third consecutive quarterly earnings decline, as consumer banking profits fell on higher expenses and provisions.

In a statement to the stock exchange, Malaysia’s second-largest bank by assets posted net profit of 1.01 billion ringgit ($242.21 million)for the July-September period, compared with 1.18 billion ringgit a year ago.

Revenue, however, rose 12% to 4.64 billion ringgit.

The group said consumer banking profits before tax declined 11.4% on-year as operating income growth was offset by higher operating expenses and provisions.

The three-month financial performance was also hit by higher expenses due to the bank’s strategy transformation programme.

Net interest income, a measure of banks’ core financial performance, climbed 6.4% to 2.57 billion ringgit ($616.31 million), supported by steady loan growth.

The group said it remains cautious on prospects for the rest of the year due to regional and global economic uncertainty.

It said its Malaysia business is expected to maintain momentum in line with loan expansion and improving capital market activity.

Its Singapore unit will track regional economic directions, while the Thai business performance is progressing in tandem with the ongoing transformation programme, it said. ($1 = 4.1700 ringgit) (Reporting by Liz Lee; editing by James Drummond)

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