CIMB Group Holdings Bhd group CEO Novan Amirudin
KUALA LUMPUR: CIMB Group Holdings Bhd
registered a higher net profit of RM1.97bil in the first quarter ended March 31, 2025 (1QFY25), as compared to RM1.94bil in the year-ago quarter, on the back of an increase in net interest income.
The bank's quarterly earnings per share rose to 18.39 sen from 18.16 sen in the same 2024 quarter, while it delivered a return on average equity of 11.4%.
Group CEO Novan Amirudin said the performance underscores the continued strength of the group's diversified Asean portfolio with strong contributions across multiple income segments, particularly from its client franchise income, which has shown consistent growth since 2022.
"We have maintained healthy asset quality and exercised disciplined cost controls to enhance resilience amid a dynamic operating environment," he added.
During the quarter, the bank said revenue contracted to RM5.5bil from RM5.63bil in the same quarter in 2024 due to net interest margin (NIM) compression, although this was offset by asset growth.
Net interest income rose marginally year-on-year (y-o-y) to RM3.82bil while non-interest income (NOII) contracted 8.5% to RM1.68bil due to lower sales of non-performing loans and proprietary trading.
On its balance sheet, the bank's total assets and gross loans increased 5.1% and 4.4% y-o-y respectively on a constant currency basis.
Its total deposits expanded 2.7% y-o-y with total current account savings account (Casa) inflows growing 7.4% y-o-y, boosting the Casa ratio to 43.8% in March 2025 from 40.8% a year earlier.
"The group’s growing Casa base and favourable funding mix helped lower cost of funds by four basis points quarter-on-quarter and 11 basis points y-o-y.
"Prudent asset-liability management also helped maintain a stable NIM of 2.16% in 1Q25 – unchanged from 4Q24, despite rate cuts in Thailand, Indonesia and Singapore," it said.
The group’s cost-to-income ratio (CIR) stood at 46.9% in 1Q25, attributed to sustained cost prudence, but not at the expense of investments in technology and resilience. Technology investments increased 5% y-o-y.
Meanwhile, total provisions remained contained at RM311 million with credit cost improving to 26bps, as compared to 35bps in 1Q24.
Gross impaired loans (GIL) ratio decreased 40bps YoY to 2.2%, with additional forward overlays of RM100mil in 1Q25 which led to a healthy allowance coverage ratio at 102.4%.
The group maintained a strong capital position, with Common Equity Tier 1 (CET1) ratio at 14.7%.
