Malaysian Bank CIMB Group Profits Boosted by oneoff Gain

0
64

KUALA LUMPUR, May 31 Reuters CIMB Group Holdings Bhd on Monday reported a 384 bump in its firstquarter earnings, helped by a oneoff gain related to an investment in its ewallet business, plus higher income.

A thirdparty investment in TNG Digital, a business jointly founded by CIMBs whollyowned subsidiary Touch n Go and Chinas Ant Group, led to a revaluation gain of 1.16 billion ringgit 281.42 million, CIMB, the second largest lender in Malaysia by assets, said in a statement.

CIMB said the thirdparty investment of approximately 200 million ringgit was from a limited partnership fund managed by a U.S.based private equity firm which invests in online and mobile payment companies globally. It did not name the firm.

This investment is part of an ongoing fund raising exercise undertaken by TNG Digital to accelerate its growth and expansion plans, the bank said, adding that fund raising initiatives would continue this year.

Reuters reported in January that TNG Digital, was in advanced talks with investors to raise at least 150 million.

Touch n Go is the largest shareholder in TNG Digital and is expected to remain so after the exercise. It had said it was looking to close the fund raising round by midyear.

CIMBs net profit for the JanuaryMarch period was 2.46 billion ringgit, up 384 from 507.9 million ringgit a year ago, its stock exchange filing showed.

Analysts polled by Refinitiv had forecast a firstquarter profit of 716.94 million ringgit.

Revenue rose almost 44…

LEAVE A REPLY

Please enter your comment!
Please enter your name here