Good first half for CIMB Thai's Malaysian owner

       Commerce Holdings Berhad (BCHB) Group, the majority shareholder of CIMB Thai Bank, has reported a first-half net profit of 1.28 billion ringgit (Bt12.3 billion), up 7.8 per cent year on year and equivalent to earnings per share of 0.362 ringgit.
       Annualised net return on equity was 14.5 per cent, well ahead of the group's annual target of 12.5 per cent.
       The group's net profit for the second quarter was 663 million ringgit, 8 per cent higher than in the first quarter.
       "We are pleased to record another quarter that's well ahead of targets. Relative to the first quarter, in the second quarter CIMB Niaga's contribution surged on the back of improved net interest margins and strong treasury income growth, while corporate and investment banking rebounded with the turnaround in regional equities markets," CEO Nazir Razak said yesterday.
       BCHB Group's first-half revenues increased 22.2 per cent year on year to 5.1 billion ringgit, while net profit grew by 7.8 per cent.
       The two periods are not strictly comparable as in the first half the group included two new acquisitions, Lippo Bank in Indonesia and BankThai in Thailand.
       The group's asset quality continues to improve with a net non-performing loan (NPL) ratio of 2.4 per cent from 2.5 per cent as at March 30.
       The group's loan-loss provisions increased 57.7 per cent year on year to 574 million ringgit in the first half, attributed to increased provisions at the enlarged CIMB Niaga, overseas divisions as well as the inclusion of CIMB Thai. Loan-loss provisions in Malaysia fell 25.7 per cent.
       BCHB Group's total credit charge for the first half stood at 0.42 per cent, or 0.37 per cent excluding CIMB Thai.
       Similarly, the Malyasian company's loan-loss coverage improved to 86.8 per cent from 85.6 per cent.
       Excluding CIMB Thai, the first-half net NPL ratio and loan-loss coverage were 2.1 per cent and 91.5 per cent, respectively. The cost-to-income ratio was higher at 52.2 per cent fro 48.2 per cent last year, as ratios from new acquisitions remain high.
       CIMB Bank's risk-weighted capital ratio continued to improve to 13.8 per cent as of June 30, versus 13.3 per cent as of the end of March.
       BCHB's double leverage and gearing stood at 114.5 per cent and 29.5 per cent respectively as of the end of the first half.