CIMB Posts 4% Profit Increase In Indonesia
News: Malaysia-based CIMB Group's unit in Indonesia has posted a 4% increase in net profit to IDR3.21trn (US$284.41mn) for the first nine months of 2013, as compared to the same period in the previous year, according to a press statement. CIMB Niaga's increase on IDR3.1trn (US$274.66mn) was partly driven by a 5% increase in both net interest income and non-interest income for the period. The bank added that its performance was also boosted by a slower rise in provisions, at 2%, against bad assets.
BMI View: 2012 was another record year for Indonesian banks, whose soaring profits were driven by strong credit growth and huge net interest margins. However, Indonesian banks are also facing increasing headwinds from aggressive regulatory pressures, and we believe that these are set to continue over the coming years as both the government and central bank pursue a progressively more populist agenda.