CIMB's full year earnings within analysts' estimates

CIMB Group Holdings Bhd, one of the country's top two lenders, posted a 7.8 per cent growth in its net profit for the full year ended December 31, 2012.

For the full year, the bank posted RM4.34 billion in net profit, versus RM4.03 billion same period a year ago. Its revenue grew by about 11 per cent to RM13.49 billion, against RM12.12 billion in 2011.

"We delivered another set of record profits for FY12, underpinned by strong earnings growth in most of our business lines," said group chief executive officer Datuk Seri Nazir Razak in a statement.

“I am especially pleased that this was achieved without aggressive lending growth and despite investing and undergoing substantial internal changes in line with our “CIMB 2.0” theme, to strengthen our competitive edge going forward.”

The financial performance is in-line with analysts' consensus expectations. According to consensus estimates compiled by Bloomberg, the bank was expected to post a net profit of RM4.32 billion on the back of RM13.21 billion in revenue.

Three of the four key divisions posted pre-tax profit growth. Its Consumer Banking, Investment Banking and Corporate Banking, Treasury & Markets divisions grew by 23.9 per cent, 18.3 per cent and 23.7 per cent, respectively, while its Investments division registered a 51.2 per cent decline in pre-tax earnings.

CIMB Niaga’s pre-tax profit jumped 31.8 per cent but its contribution to the group was only 24.5 per cent higher due to the 8.9 per cent depreciation of Rupiah in 2012. CIMB Thai’s pre-tax profit rose 21.2 per cent to THB1.668 billion while CIMB Singapore’s pre-tax profit rose 73.3 per cent to RM156 million. The group's non-Malaysian entities are now contributing 41 per cent of the group's pre-tax profit, versus 36 per cent in 2011.

The group has also set new targets for this financial year, including a return of equity of 16 per cent, total credit growth of 15 per cent, among others.

As at Monday evening, Bloomberg data revealed that there were 14 research houses that are placing a BUY call on CIMB stocks, with nine research houses recommending investors to HOLD on to the stock and seven research houses advising investors to SELL.

The lender's stock on Bursa Malaysia rose by 2 sen at RM7.07 yesterday, with more than 4.6 million shares changed hands.