CIMB's share prices spurted up spiritedly yesterday to clinch a gain of 22 sen. This is brought about apparently by bullish buying on the back of their just reported earnings in its Indonesian operations.
PT Bank CIMB Niaga Tbk, the Indonesian subsidiary of CIMB Group Holdings Bhd has posted a first-half ended June 30, 2010 with a whopping net profit 1.12 trillion rupiah which is 62% higher than the same period a year ago with net interest income improving 16% and net non-interest income by 7%.
Compared to the first quarter, the bank posted a second quarter net profit that was 15% higher at 605 billion rupiah.
Total loans for the first half grew 26% to 91.76 trillion rupiah driven by investment loans in corporate banking and auto loans in retail banking while total deposits grew by 29% to 106.18 trillion rupiah.
Gross non-performing loans ratio for the bank improved to 2.67% while impairment ratio for the second quarter decreased to 4.3% from the first quarter.
The loan loss coverage ratio increased to 140% in the first quarter compared to a quarter ago with impaired loan loss coverage increasing 293 basis points to 76.5%.
A Bloomberg report also pointed out that parent CIMB Group will target a listing on the Indonesia Stock Exchange towards year-end or early 2011.
On Aug 4, Indonesia Stock Exchange president director Ito Warsito said the stock exchange might approve the bank’s dual-listing proposal, which could come about after Jakarta makes changes to regulations in the fourth quarter to allow foreign-listed companies to list their shares.
CIMB Group chief executive officer Datuk Seri Nazir Razak had told reporters in early May that the bank had informed the Indonesian authorities of its interest in a dual-listing.
So, there are a lot of news making out there for the bank to create bullish excitement.
Is it too late to take a berth on this counter at the current price of RM7.90?
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