Malaysia's CIMB posts 36% rise in quarterly profit

A man walks out of a CIMB Bank in Kuala Lumpur. CIMB posted a 36 per cent jump in second-quarter profit.
A man walks out of a CIMB Bank in Kuala Lumpur. CIMB posted a 36 per cent jump in second-quarter profit.PHOTO: REUTERS

KUALA LUMPUR (REUTERS) - Malaysia's second biggest bank CIMB Group Holdings Bhd posted a 36 per cent jump in second-quarter profit due to higher net interest income, but said it will not be able to meet its loan growth and return on equity targets for the full year.

Net profit totalled RM872.8 million (S$293.9 million) for the quarter ended June, compared with RM639.8 million in the same period a year ago. Two analysts had an average profit forecast of RM695 million for the quarter, according to Thomson Reuters data.

Net interest income for the quarter rose about 4 per cent to RM2.35 billion.

"While we expect a better performance in 2H16, our loan growth and ROE expectations will likely be below our original 2016 target," CIMB Group chief executive Zafrul Aziz said in a statement.

All other targets on capital, cost and dividend payout remain on track, he said.