KUALA LUMPUR: CIMB Group Holdings Bhd's net profit rose 10.6 per cent to RM1.96 billion in the second quarter ended June 30, 2024 (Q2 2024) versus RM1.77 billion in the same period last year.
This was driven by robust operating income growth, disciplined cost controls and improvements in asset quality.
Its revenue for the quarter under review expanded 5.0 per cent year-on-year (YoY) to RM5.6 billion from RM5.3 billion in Q2 2023.
For the first half of 2024 (1H24), net profit grew 14.0 per cent YoY to RM3.90 billion from RM3.42 billion in the corresponding period last year.
Its revenue for the period rose 8.7 per cent to RM11.23 billion versus RM10.33 billion a year ago.
Operating income in 1H24 was up 8.7 per cent YoY to RM11.23 billion, with net interest income (NII) increasing by 6.7 per cent to RM7.65 billion underpinned by both net interest margin (NIM) and asset growth.
CIMB said price discipline and deposit-led strategies to address industry NIM compression in 2023 are starting to pay off, resulting in a second straight quarter of NIM expansion with 7 basis points (bps) in 1H24.
Loan growth rose 4.2 per cent YoY from all markets and segments, whilst deposits grew by 2.7 per cent YoY.
CASA ratio recorded 40.9 per cent as at June 2024, up from 38.5 per cent as at June 2023.
Meanwhile, non-interest income strengthened, improving 13.2 per cent to RM3.58 billion, while non-interest income ratio improved to 31.9 per cent, up from 30.6 per cent in 1H23 driven by stronger fees, treasury client sales and trading.
The group's cost-to-income ratio (CIR) improved 40bps YoY to 45.6 per cent, with operating expenses remaining under control, rising 7.9 per cent YoY mainly due to increased investments in technology.
The group's return on average equity (ROE) improved 11.4 per cent, as compared to 10.6 per cent recorded in 1H23.
Accordingly, the group proposed an all-cash first interim dividend of 20 sen per share and a special dividend of 7.0 sen per share.
The interim dividend is based on a payout ratio of 55.0 per cent, based on 1H24 net profit, in line with the group's dividend policy.
"1H24 reflects another positive performance for the group. Our achievement is underpinned by the trust of our customers, collaboration with our partners and continued strong execution of the strategies under our Forward23+ strategic plan, while remaining nimble and responsive to current trends.
"The performance was driven by robust operating income growth, disciplined cost controls and improvement in asset quality, contributed by the group's diversified Asean portfolio, which serves all client segments," said group chief executive officer Novan Amirudin.
He added the group is optimistic for the remainder of the year, while being vigilant and responsive to industry trends such as global economic headwinds and market volatility which continue to persist.