CIMB Group on track to beat 2022 targets


"We are maintaining our cautious stance for the year ahead as we expect some tapering in loan demand given the rising interest rate environment and intensified competition for deposits in line with economic activity,” group CEO Abdul Rahman.

KUALA LUMPUR: CIMB Group Holdings Bhd remains optimistic of an improved financial performance this year underpinned by the strong economic growth momentum and higher business activity.

In a filing with Bursa Malaysia yesterday, the banking group stated it would continue to execute on initiatives laid out under its Forward23+ strategic plan, particularly focusing on targeted growth segments, cost management, risk adjusted return on capital optimisation, sustainability initiatives and driving technology investment to further improve digital capabilities and strengthen operational resiliency.

According to the group, asset quality and credit risk management will remain a core focus in all its business segments and geographies.

“We are firmly on track to exceed our 2022 targets as we approach the year-end.

“Notwithstanding this, we are maintaining our cautious stance for the year ahead as we expect some tapering in loan demand given the rising interest rate environment and intensified competition for deposits in line with economic activity,” CIMB Group group CEO Datuk Abdul Rahman Ahmad said in a statement.

Abdul Rahman added the group would focus on sustaining its deposits franchise with strong emphasis on current account, savings account (CASA) retention, and build on loan growth judiciously while managing credit risk.

“We will continue to grow targeted segments such as the affluent and wealth management business, transaction banking and our regional Asean network business,” he said.

A key focus area is the group’s investments into technology and operations, with the banking group intending to invest RM900mil in 2022 to enhance its digital platforms and strengthen technology resilience.

“This includes investments related to the implementation of additional security measures, as announced by Bank Negara to address scams, which we fully support and have already started introducing progressively to further protect customers. Moving forward, we will maintain our focus and remain guided by our mid-term Forward23+ strategic plan, which we are now almost midway though, in realising our aim to be the leading focused Asean bank,” he said.

For its third quarter ended Sept 30, 2022 (3Q22), CIMB posted a net profit of RM1.41bil compared with the RM100.6mil net loss in 3Q21, while quarterly revenue rose 13.7% year-on-year (y-o-y) to nearly RM5bil.

Earnings per share (EPS) for 3Q22 was 13.43 sen (versus loss per share of 1.07 sen in 3Q21).

The group said the strong profit rebound in the period was largely due to significant growth in operating income of 13.7% and the absence of exceptional items in 3Q21 relating primarily to the non-cash write-down in value of CIMB Thai.For the nine-month period, CIMB’s net profit was up 19.6% y-o-y to RM4.11bil while revenue dropped by 3% to RM14.62bil.

EPS for the period was 39.69 sen versus 34.49 sen in the same corresponding period last year.

Abdul Rahman said strong operating income driven by loan growth across all businesses and markets, continued cost discipline and lower provisions had contributed to the group’s positive performance in the nine-month period.

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CIMB , Forward23+ , assetquality , creditrisk , earnings , revenue , EPS

   

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