KUALA LUMPUR: CIMB Group Holdings Bhd is optimistic about its prospect for the rest of this year.
Group chief executive officer Datuk Abdul Rahman Ahmad said this was due to the anticipated recovery of regional economies as well as expansion in domestic demand.
However, Abdul Rahman said the bank was also cautious on the heightened risk of slower economic growth arising from the impact of inflationary pressures and geopolitical uncertainties.
"We will continue to stay on course with our Forward23+ strategic plan to strengthen our position to be the leading focused Asean bank, as we build on the positive momentum of asset growth, contain cost escalation and improve asset quality to deliver sustainable financial returns," he said in a statemwnt today.
"We have also identified specific focus areas of investments to accelerate our digital transformation where we constantly look at ways to further strengthen our technology and operational resilience," Abdul Rahman added.
CiMB's net profit fell to RM1.43 billion in the first quarter (Q1) ended March 31, 2022 from RM2.46 billion a year ago.
The bank's revenue dropped 19.8 per cent to RM4.74 billion in Q1 2022 from RM5.91 billion last year.
CIMB's Q1 2022 core operating income was flat year-on-year but grew 2.9 per cent quarter on quarter (qoq) reaching RM4.74 billion.
Out of this, the bank's net interest income (NII) grew by 3.8 per cent yoy to RM3.55 billion, despite a marginally lower net interest margin (NIM) of 2.45 per cent mainly due to the group's Indonesia business.
Core non- interest income (NOII) declined by 10.9 per cent yoy to RM1.19 billion due to weaker global investment environment.
CIMB's loan growth regained momentum, increasing by 4.9 per cent yoy on the back of economic recovery positively impacting most markets and segments, especially in consumer banking where loans grew 6.9 per cent yoy.
The group's capital position remains strong and above target with its common equity tier 1 ratio at 14.5 per cent as at March 22, up from 12.9 per cent as at March 2021 and 14.5 per cent as at December last year.