CIMB recorded a net profit of RM3.9 billion in 6 months
ASTRO AWANI
31/08/2024
Novan said CIMB's achievements were supported by the trust of its customers, collaboration with partners and continued strategy execution under CIMB's Forward23+ strategic plan, while remaining responsive to current trends. - CIMB photo
KUALA LUMPUR: CIMB Group Holdings Berhad (CIMB), recorded a net profit of RM3.9 billion, up 14 percent year-on-year for the financial year ending 30 June 2024 compared to RM3.42 billion in the same period the previous year.
CIMB Group Chief Executive Officer, Novan Amirudin said, the achievement of the first half of the year reflects another positive performance for the group.
Novan said CIMB's achievements were supported by the trust of its customers, collaboration with partners and continued strategy execution under CIMB's Forward23+ strategic plan, while remaining responsive to current trends.
"This performance was driven by strong operating income growth, disciplined cost control, and improvements in asset quality contributed by a diverse ASEAN portfolio, which serves all customer segments
"Our robust risk management culture also enables the group to manage risk in the current volatile market", he said at the press conference announcing CIMB's first half 2024 financial results on Friday.
He added that in order to strengthen operational resilience, the group has invested and will continue to invest in technology, systems and processes to provide a safe and smooth banking environment for all customers.
In addition, operating income for the first half of 2024 increased 8.7 percent year-on-year to RM11.23 billion, with net interest income (NII) increasing 6.7 percent to RM7.65 billion supported by growth in net interest margin (NIM) and assets.
"The price discipline and deposit-driven strategy to address industry NIM pressures in 2023 is starting to bear fruit, resulting in NIM expansion for two consecutive quarters with an increase of 7bps in the first half of 2024," he said.
Additionally, loan growth continued its momentum, increasing 4.2 percent year-on-year by market and segment.
Meanwhile, deposits increased 2.7 percent year-on-year.
The current account and savings account (CASA) ratio recorded 40.9 percent in June 2024, up from 38.5 percent in June 2023.
Meanwhile, non-interest income (NOII) increased 13.2% to RM3.58 billion, with the NOII ratio increasing to 31.9 percent, compared to 30.9 percent in the first half of 2023, driven by increased fees, treasury client sales, and trading.
Accordingly, CIMB proposed an interim cash dividend of 20.00 sen per share and a special dividend of 7.00 sen per share.
This interim dividend is based on a payout ratio of 55 percent based on net profit for the first half of 2024, in line with the group's dividend policy.
Novan said the group is optimistic for the remainder of the year while being cautious and responsive to industry trends such as global economic challenges and market uncertainty that still continues.
"CIMB's Forward23+ strategic plan will expire at the end of this year, and we are currently drafting the next strategic plan that we will announce together with the 2024 financial year results taking into account customer needs, trends, and the competitive landscape
"Our commitment is to invest in the future of the business including ensuring sustainability is a priority in our entire operation," he added.
According to the Group's Chief Executive Officer, CIMB recently announced 2030 climate targets for the group's oil and gas and real estate portfolio.
It is in addition to previously announced targets for thermal coal mining, cement, palm oil, and power.
This makes CIMB the first bank in Malaysia to complete its 2030 decarbonisation target as part of the group's commitment to net zero by 2050.
"We are pleased to be able to serve all customer segments from the underserved, small and medium enterprises (SMEs), corporates and governments throughout Asean.
"Continue to play our role as a responsible financial partner to advance customers and communities in the markets we operate in," he said.
The group's capital position remains strong and is above target with common equity tier 1 (CET1) at 18.2 percent in June 2024.
The total capital ratio is at 18.2 percent in June 2024.
The liquidity coverage ratio (LCR) remains comfortably above the regulatory requirement of 100 percent for all banking entities in the group.
