KUALA LUMPUR: CIMB Group Holdings Bhd
remains cautious for 2025, staying vigilant amid external and geopolitical uncertainties, according to group chief executive officer Novan Amirudin.
“While challenges persist, we expect resilience across our Asean markets where we operate and anticipate our core financial performance to continue on a positive trajectory, in tandem with profitability prioritisation without compromising investments and resiliency,” Novan said in a statement.
“As we chart the group’s next phase of growth with our new strategic plan, we remain steadfast as a purpose-led organisation in our commitment to advancing customers and society across
Asean. We will prioritise optimising our capital and resources and continue to drive sustainable growth, making this organisation simpler, better, and faster,” he added.
In the fourth quarter ended Dec 31, 2024, CIMB’s net profit rose 5% to RM1.8bil from RM1.7bil in the corresponding quarter last year, translating to earnings per share of 16.78 sen, up from 16.09 sen previously.
However, revenue for the quarter dipped slightly to RM5.32bil from RM5.37bil.
For the full financial year, CIMB’s net profit rose 10.7% to RM7.7bil, or 72.27 sen from RM7bil, or 65.46 sen a year ago, while revenue increased 6.1% to RM22.3bil from RM21bil.
CIMB has proposed a second interim dividend of 20.00 sen per share, bringing the total proposed annual dividend to 47.00 sen per share. This translates to a record total dividend payout of RM5.04bil.
The stronger financial results led to a significant improvement in return on average equity (ROE) to 11.2%, up 50bps year-on-year (YoY).
FY24 operating income rose 6.1% YoY to RM22.30bil, contributed by growth in net interest income (NII) and non-interest income (NOII).
CIMB said its NII was up 5.3% YoY to RM15.40bil, driven by healthy loan growth, while NOII grew 8.1% YoY to RM6.90bil, driven by strong client franchise business and trading income, improving NOII ratio to 31.0%, up 60bps YoY.
On a constant currency basis, CIMB’s total gross loans grew by a healthy 4.8% YoY, in line with markets.
Under its deposit-led strategy, total deposits grew 5.2% YoY, while current account savings account (CASA) balances increased 7.7% YoY, raising the CASA ratio to 43.1% as of December 2024.
The group’s cost-to-income ratio improved 20bps YoY to a sustainable 46.7% as operating expenses remained under control, translating to a positive JAW. Pre-provisioning operating profit (PPOP) grew 6.6% YoY to RM11.88bil.
Total provisions fell 5.5% YoY to RM1.5bil, driven by improved asset quality. The gross impaired loans (GIL) ratio dropped 60bps to 2.1%, while allowance coverage hit a record 105.3%.
The group continues to be well capitalised as its Common Equity Tier 1 (CET1) ratio remained strong at 14.6%, providing it future flexibility to absorb any potential increase in capital requirements.
“We are pleased that our strategy to pivot towards client franchise income, pricing discipline and deposits have led to a strong FY24 performance.
“The results reflect the success of the Forward23+ strategic plan, credited to portfolio reshaping, efficiency and resiliency, and improved asset quality. Our focus to be the leading focused Asean bank proves to benefit us, helping us to prioritise our customers,” Novan said.
