Jakarta: PT Bank CIMB Niaga Tbk (“CIMB Niaga”; IDX: BNGA) today reported an unaudited consolidated net profit of Rp524.2 billion for the first quarter 2010, or up by 100% compared to the same period in 2009 of Rp262.7 billion. CIMB Niaga’s higher profit was largely due to strong increase in total operational income, absence of merger cost in 2010, and lower provisioning.

Total assets as at 31 March 2010 reached Rp114.6 trillion, up by 11% from the corresponding period of Rp102.9 trillion. Accordingly, CIMB Niaga maintains its position as the fifth largest bank in Indonesia in terms of total assets, loans and deposits. 

Loans grew by 14% to Rp83.7 trillion, driven by growth in all business segments. CIMB Niaga's loan-deposit ratio (LDR) as at 31 March 2010 reached 88.46% compared to 85.77% in the corresponding period last year. More than 18% of total loans were disbursed outside of Java, reflecting CIMB Niaga’s diversified approach to loan distribution in Indonesia. CIMB Niaga continues to ensure the quality of its asset as reflected in its NPL ratio (gross) of 3.07% as at 31 March 2010, below the industry average of 3.54% in February 2010.

Arwin Rasyid, CIMB Niaga’s President Director said, “We are encouraged by the positive performance of the bank despite the challenging business environment that we have to face. We will continue to maintain a balanced approach in all aspects of our business comprising of corporate, commercial and retail banking segments including Syariah. We will also continue to invest in our infrastructure, so that we will bring on quality banking solutions to all our customers and stakeholders across Indonesia.”

The bank’s financial ratios in the first quarter of 2010 compared to the same period in 2009 showed improvement as follows: Return on Asset (ROA) from 1.44% to 2.54%, Return on Equity (ROE) from 10.90% to 20.59%, and BOPO from 86.21% to 77.64%.

In addition, the Bank has also made some improvements in third party deposits which reached Rp93.7 trillion, an increase from the previous corresponding period of Rp84.4 trillion. Funding composition continues to improve, as reflected in the increase of CASA (current account savings account) by Rp7.5 trillion or 20% year-on-year to Rp44.8 trillion. Accordingly, low cost funding ratio improved by 366 bps year-on-year to 47.9%.

The bank’s first quarter 2010 financial report is prepared in compliance with International Financial Reporting Standard (IFRS) 139 (PSAK 50/55).

Expanding our distribution network

Aiming to further improve its reputation for good customer service and customer convenience, CIMB Niaga has increased the number of branches from 659 to 676 during the first quarter 2010. Other CIMB Niaga’s distribution channels include the network of 1,262 Automatic Teller Machines (ATMs) and 244 Self Service Terminals (SSTs), which provide CIMB Niaga customers with easy access to a diverse range of services and financial information from housing loan simulation to buying airline tickets.

Recent awards

During this period, CIMB Niaga received numerous awards, including the Indonesian Bank Loyalty Award 2010 as The Best of Loyalty Program for Savings Account Islamic Banking program and The Best Bank Service Excellence 2010 by Marketing Research Indonesia and InfoBank magazine. Recently, CIMB Niaga was also awarded Call Center Award 2010 for Service Excellence in Banking category by Center Customer for Satisfaction & Loyalty (CCSL) and Marketing magazine.

About CIMB Niaga

Established under the name of Bank Niaga in 1955, CIMB Niaga, as a Surviving Bank, merged in November 2008 with PT Bank Lippo Tbk, at which 77.24% of the merged bank's shares are held now by the CIMB Group. The bank offers a comprehensive suite of both conventional and Islamic banking products and services through its 676 branches in major cities in Indonesia. Over 11,000-strong personnel now work for the merged banking institution.

CIMB Group is Malaysia’s second largest financial service provider and one of the leading banking business groups in South-East Asia. Headquartered in Kuala Lumpur, its key regional offices are located in Singapore, Indonesia and Thailand. CIMB Group is also the majority shareholder of CIMB Niaga Indonesia, and the single largest shareholder of CIMB Thai in Thailand. CIMB Group is listed on the Bursa Malaysia via CIMB Group Holdings Berhad (formerly known as Bumiputra-Commerce Holdings Bhd). It has a market capitalisation of approximately RM49.7 billion as at 31 March 2010. The Group has over 36,000 employees located in 11 countries.

For further inquiries, please contact:
Dina Sutadi
Corporate Communication Head
PT Bank CIMB Niaga Tbk
Tel: +62 – 21 250 5151 ext. 35104
Fax: +62 – 21 252 6749
Email: dsutadi@cimbniaga.co.id

Website: www.cimbniaga.com