CIMB Niaga’s Shariah unit ups profits

The Shariah unit of CIMB Niaga doubled its earnings in the first half as customers placed more funds, pushing upthe value of its assets.

Profits rose 155 percent to Rp 63 billion or $6.6 million from the same six months a year earlier, according to Handoyo Soebali, a director.

“The improving performance of the Shariah unit has encouraged us to develop this business unit all over Indonesia, including Banjarmasin,” Handoyo said.

The surge in profit before tax raised return on equities to 21 percent, compared to 14 percent a year earlier, according to the bank’s commercial banking and Shariah director, Handoyo.

He said that the Shariah unit also channeled financing worth Rp 4.24 trillion, an 80 percent increase.

The amount of customer funds put in the Shariah unit also increased significantly by 61 percent to Rp 4.10 trillion, Handoyo said. Meanwhile, the value of assets jumped 61 percent to Rp 5.69 trillion, he said.

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