CIMB Niaga records strong performance in 1Q25

KUALA LUMPUR: PT Bank CIMB Niaga Tbk, CIMB Group Holdings Bhd’s Indonesian subsidiary and the second largest private bank in Indonesia, recorded strong growth in its corporate banking in the first quarter of 2025.

This had lent support to its pre-tax profit of 2.2 trillion rupiahs in the first quarter and represented a 3.2% year-on-year (y-o-y) growth or an earnings per share of 71.80 rupiah.

“We are pleased that 2025 is off to a good start, underpinned by the continued execution of our strategic priorities. Our profit and asset quality grew strongly, with gross non-performing loans improving to 1.85% from 2.14% in the same period last year, reflecting our disciplined risk management approach," said CIMB Niaga president director Lani Darmawan in a statement.

"We continue to build a strong foundation through prudent growth and strategic investments that support our long-term value creation,” she added.

CIMB Niaga said it maintains a solid capital and liquidity position with capital adequacy ratio and loans to deposit ratio of 24.8% and 89.3%, respectively.

Its total consolidated assets stood at 371 trillion rupiah as of March 31.

CIMB Niaga said its total deposits increased to 254.2 trillion rupiah or a 2.5% y-o-y growth, with a current account and savings account (CASA) ratio of 67.4%.

Its CASA position grew 7% y-o-y, driven by stronger customer relationships and enhanced digital touchpoints.

Total loans grew 8.7% y-o-y to 230.1 trillion rupiah, being driven by strong performance across key segments.

CIMB Niaga said corporate banking recorded the highest growth of 13.7% y-o-y, while small and medium enterprises a 7.6% y-o-y growth and consumer banking grew steadily at 5.5% y-o-y.

It noted the increase in retail loans was largely attributed to auto loans, which grew 27.9% y-o-y.

In Sharia banking, CIMB Niaga's Islamic business unit (CIMB Niaga Syariah) maintained its position as the largest Unit Usaha Syariah (Islamic business unit) in Indonesia, with total financing valued at 59 trillion rupiah and deposits reaching 50.2 trillion rupiah as at March 31.

This significant growth in financing was primarily contributed by the retail segment, it said.

CIMB Niaga Syariah said it will focus on growing its funding composition, particularly on low-cost funding through expanding its community network.

In a separate statement, CIMB Group chief executive officer Novan Amirudin said 2025 marked a pivotal chapter for the group as it transitioned from its Forward23+ strategy to the newly launched strategic roadmap, Forward30.

Forward30 is anchored on its purpose of advancing customers and society.

"Forward30 has a strong focus on optimising capital allocation and reimagining banking through a truly customer-centric model. We are seeing increased business opportunities in the ‘new world order’, especially with intra-regional trade, which will benefit an integrated Asean franchise like CIMB.

“We are committed to delivering simpler, better and faster experiences for our customers, while empowering our employees with simpler, better and faster processes,” he said.