By Chester Tay

CIMB Group Holdings Bhd.'s second-quarter net profit fell sharply on losses related to a Covid-19 loan moratorium for borrowers, as well as higher provisions for credit losses on loans.

Net profit plunged 82% from a year earlier to 277.1 million ringgit ($66.4 million), although net interest income rose 13% to MYR2.69 billion, Malaysia's second-largest lender by asset size said Friday.

First-half net profit fell 71% to MYR785.0 million, while net interest income for the half grew 8.8% to MYR5.26 billion.

For the remaining of the year, CIMB said loan growth and capital markets activity are likely to remain relatively weak, while loan provisions are expected to be elevated given the challenging operating conditions. 



  Write to Chester Tay at chester.tay@wsj.com