Malaysia's CIMB Group 2Q Net Profit Jumps 26% on Year to MYR1.10 Billion

By Yantoultra Ngui Features Dow Jones Newswires

KUALA LUMPUR, Malaysia--CIMB Group Holdings Bhd. (1023.KU), the country's second-largest lender by assets, on Monday reported a 26% on-year jump in its net profit for the second quarter ended June, mainly on higher net interest income, and income from Islamic banking operations.

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The better performance also came on the back of write-backs for impairment losses and for commitments and contingencies, according to its financial statement. Net profit for the April-June period rose to 1.10 billion ringgit ($258.44 million) from MYR872.83 million a year ago, according to a local stock exchange filing.

Revenue increased 10.9% to MYR4.33 billion during the quarter from MYR3.90 billion, the filing showed.

CIMB, Southeast Asia's fifth-largest bank by assets, spent the past decade expanding in a region that has lately been struggling with softer economic growth.

But things have turned positive in the region this year, especially at home in Malaysia, which announced earlier this month faster-than-expected second quarter economic growth of 5.8%, a pace last seen in first quarter 2015.

"We feel cautiously optimistic for the second half of 2017, given the strong GDP (gross domestic product) growth for Malaysia and Indonesia, and the expected gradual improvement in Singapore and Thailand, all of which signal increased regional activity and improved capital markets," Chief Executive Zafrul Aziz said in a statement.

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CIMB shares were down 0.3% at MYR6.70 ahead of the earnings release, underperforming the local benchmark index's 0.11% rise.

-- Write to Yantoultra Ngui at yantoultra.ngui@wsj.com

(END) Dow Jones Newswires

August 28, 2017 01:29 ET (05:29 GMT)