KUALA LUMPUR, Aug 22 (Reuters) - Malaysia’s number two lender CIMB Group reported second quarter net profit of 970.02 million ringgit ($326.7 million) on Tuesday, which beat a JP Morgan estimate of 942 million ringgit.
CIMB said the earnings for the quarter, which represented a 9 percent increase from the previous year, were driven by its domestic consumer banking operations and growth in CIMB Niaga, its Indonesian unit.
CIMB is retaining its 17 percent return-on-equity (ROE) target for 2011, but said it expected challenges going forward owing to volatile financial markets.
“We have re-strategised for volatile financial markets and slow economic growth in the region,” the bank said in a statement.
Shares of the company rose 0.26 percent on Tuesday ahead of the earnings announcement. ($1 = 2.970 Malaysian Ringgits) (Reporting by Min Hun Fong; Editing by Purwa Naveen Raman)