KUALA LUMPUR: CIMB Group Holdings Bhd expects better performance across most segments and markets for 2021, with optimism fuelled by a vaccine-driven economic recovery.
CIMB group chief executive officer Datuk Abdul Rahman Ahmad, however, said the pace and extent of recovery remained both uncertain and uneven.
"The group will continue to monitor asset quality and maintain a prudent approach to credit underwriting to achieve the right balance between profitability and growth," Abdul Rahman said at CIMB Group's virtual 64th annual general meeting held virtually today.
Digitalisation, both within the bank and for its customers, remains a key priority for CIMB.
"We will continue to invest in and enhance our technology and digital platforms to increase productivity and improve customer experience, reflecting the accelerated shift towards digital banking over the past year," he said.
For year ended December 31, 2020 (FY20), CIMB saw a 5.5 per cent or RM524 million decrease in operating expenses.
The group said this had lead to an improved cost-to-income ratio of 52.2 per cent, down 1.2 per cent year-on-year.
CIMB said topline resilience, cost discipline and proactive measures to protect asset quality had enabled it to strengthen its financial position and ensure it remains well-capitalised against shocks.
This leads to its highest ever CET1 ratio of 13.3 per cent.
The group proposed an annual dividend of 4.81 sen per share for FY20, amounting to a total payout of RM477 million and a payout ratio of 40 per cent in line with its dividend policy.
Abdul Rahman said for FY21, stringent cost optimisation would remain a core focus to further improve productivity and efficiency.
"The group will remain committed to supporting the governments' efforts to help business recovery and economic growth across the region, while continuing to provide financial assistance to customers who have been impacted by the pandemic," he said.
CIMB group chairman Datuk Mohd Nasir Ahmad said the group remained resilient in terms of having a strong capital position and healthy liquidity ratio notwithstanding market volatility and disruptions brought about by the pandemic.
"Guided by our recalibrated strategy known as Forward23+, we are now focused on accelerating growth in tandem with economic recovery.
"The board will continue to provide guidance and oversight over the group's strategic imperatives to deliver sustainable financial returns and ultimately create consistent value for all our stakeholders," he added.