CIMB Niaga's Net Profit in Semester I-2023 Reaches Rp4.2 Trillion, Sharia Financing Grows 25%

Dream - PT Bank CIMB Niaga Tbk recorded a consolidated pre-tax profit (unaudited) of Rp4.2 trillion in Semester I-2023. This represents a double-digit increase of 25.8% year-on-year (yoy) and results in earnings per share of Rp129.67.

CIMB Niaga President Director Lani Darmawan stated that the business performance and revenue growth of the bank in the first half of 2023 were solid, with effective cost control, asset quality improvement, and credit cost reduction.

"We can continue to provide better benefits for shareholders," said Lani in an official statement on Monday, July 31, 2023.

With a profit reflected in a return on equity (ROE) of 15.4%, Lani explained that the company's performance is inseparable from asset quality improvement. This can be seen from the gross non-performing loan (NPL) ratio, which decreased from 3.5% in June 2022 to 2.5% in June 2023.

"With this positive achievement, we believe that we can achieve our 2023 targets successfully," she added.

Sharia Financing Increases by 25%

CIMB Niaga also strives to maintain a solid capital and liquidity position with a capital adequacy ratio (CAR) and loan to deposit ratio (LDR) of 23.2% and 86.0%, respectively.

The consolidated total assets amounted to Rp329.7 trillion as of June 30, 2023. Meanwhile, total Third Party Funds (DPK) reached Rp235.8 trillion with a CASA ratio of 64.3%.

The amount of credit/financing increased by 8.6% year-on-year (yoy) to Rp206.0 trillion (or Rp205.1 trillion excluding Salam financing), supported by a 13.2% yoy growth in Corporate Banking and an 8% yoy growth in Consumer Banking.

The Home Ownership Credit (KPR) grew by 4.8% yoy, while the Vehicle Ownership Credit (KPM) increased by 14.6% yoy, including contributions from subsidiaries, PT CIMB Niaga Auto Finance.

Meanwhile, CIMB Niaga Syariah's Islamic Business Unit (UUS) has successfully maintained its position as the largest UUS in Indonesia, with total financing reaching Rp53.0 trillion, an increase of 25% (including Salam financing), and DPK of Rp44.5 trillion, an increase of 20.4% as of June 30, 2023.

CIMB Niaga Syariah Manages Assets of Rp64.32 Trillion, Choose BUS or Remain UUS?

Dream - CIMB Niaga Syariah, the Islamic business unit (UUS) of PT Bank CIMB Niaga Tbk, does not have any plans to separate its business (spin-off) into a general Islamic bank (BUS).

Head of Sharia Consumer CIMB Niaga, Bung Aldilla, believes that spin-off is not the only way to expand the Islamic industry market.

"Let the spin-off be a business choice for each bank. It doesn't have to be mandatory. Because for us, UUS is the most appropriate model," he said during a Media Gathering event in Jakarta on Monday, June 26, 2023.

Bung Aldilla explained that the cost of managing the Islamic business unit is actually more efficient than becoming a general Islamic bank. The company can also continue to utilize the conventional CIMB Niaga bank network to drive its business.

Although he sees the existence of UUS as more efficient than spinning off into a BUS, Bung Aldilla assured that the company will certainly follow any decision made by the government.

In its latest report, CIMB Niaga Syariah currently manages assets of Rp64.32 trillion until the first quarter of 2023. This represents a 16% increase (yoy) from the previous value of Rp55.27 trillion.

For information, the provision for the spin-off of UUS into BUS is stipulated in Law Number 21 of 2008 concerning Islamic Banking, which requires the spin-off of UUS to be carried out no later than the end of June 2023.

However, the provision regarding the obligation for spin-off was later removed in Law No. 4/2023 concerning the Development and Strengthening of the Financial Sector (UU PPSK).

The replacement regulation governing the obligation for UUS to transform into BUS is determined by OJK. Currently, UUS is waiting for new regulations regarding spin-off set by OJK.