Malaysia's second-largest lender, Bumiputra Commerce Holdings Berhad, today saw its net profit for 2006 surge 82 percent to RM1.504 billion.

The group said its strong performance came despite a year of "massive changes" after it acquired the Singapore-based GK Goh Securities in mid-2005 to create CIMB-GK, its international investment banking arm.

Bumiputra Commerce also acquired Southern Bank Berhad (SBB) last year to venture into retail banking, and undertook a re-branding exercise when it merged with CIMB Investment Bank.

"We are very pleased to have significantly exceeded our financial targets in 2006 despite our ambitious transformation agenda," the group's chief executive, Nazir Razak said in a statement accompanying the results.

"We are optimistic ... that our consumer bank transformation, including the merger with SBB, will yield positive results from 2007 onwards to mitigate our current dependence on investment banking and treasury," Nazir said.

Banking unit contributes most

For the full year to December 2006, the group's revenue rose to RM6.393 billion from RM4.723 billion in 2005.

For its fourth quarter from October to December, revenue was up at RM2.188 billion compared to RM1.310 billion in the same period in 2005.

The group's investment banking unit, CIMB Universal Bank, CIMB-GK, and SBB's earnings since July 1 contributed 89 percent of the group's pretax profit at RM1.775 billion.

Its overseas operations, PT Bank Niaga, accounted for 18 percent of earnings, with RM367 million.

Bumiputra Commerce made a loss of RM140 million arising from interest-related expenses from its SBB acquisition, the company said.