CIMB sees net profit rising 28.3 pct in FY23
CIMB Group Holdings Bhd (CIMB Group) announced a strong financial performance with net profit increasing by 28.3 per cent to RM6.98 billion for the financial year ended December 31, 2023 (FY23), compared to RM5.44 billion in the preceding year.
Profit before tax (PBT) increased 14 per cent y-o-y to RM9.54 billion, translating to earnings per share (EPS) of 65.5 sen with a return on average equity (ROE) of 10.7 per cent. This represents a strong improvement from nine per cent reported ROE recorded in the previous financial year ended December 31, 2022 (FY22).
The FY23 performance was underpinned by robust operating income growth with solid loan and CASA growth from all core markets, coupled with lower provisions from prudent risk management and recoveries.
FY23 operating income rose 5.9 per cent y-o-y to RM21.01 billion, driven by non-interest income (NOII), which grew strongly by 36.5 per cent to RM6.39 billion from investment and marketrelated income.
This offset the challenging net income margin (NIM) environment caused by the continued elevated cost of deposits with net interest income (NII) dipping 3.5 per cent to RM14.63 billion.
CIMB Group’s total gross loan growth momentum continued, rising 8.3 per cent y-o-y driven by stronger demand across targeted key markets and segments, whilst total deposits grew by 8.1 per cent y-o-y.
In addition, total CASA expanded strongly by 11.5 per cent y-o-y, leading to a CASA ratio of 41.2 per cent as at December 2023, reflecting the positive impact of the Group’s strategy to enhance its CASA franchise.
Datuk Abdul Rahman Ahmad, group chief executive officer of CIMB Group said, “We are extremely pleased with the FY23 financial performance especially given the challenging industry NIM environment caused by the higher cost of deposits across key markets.
“This is attributable to the positive impact from the successful execution of our Forward23+ strategic plan particularly in enhancing our CASA franchise and driving our asset quality improvements sustainably.
“Our diversified Asean portfolio continues to be key, which has helped us deliver growth, while mitigating downside risks in weaker markets”.
Abdul Rahman said, “Moving into 2024, the Group remains vigilant of the global economic uncertainties due to geopolitical tensions and concerns of slowdown in China, together with continued industry competition for deposits.
“Our priority remains on completing our Forward23+ strategic plan and delivering on key focus areas, such as affluent and wealth management, strengthening our CASA and deposit franchise, as well as implementing effective balance sheet management to improve NIM regionally.”
“Investments into technology and operations to strengthen resiliency and digital platform reliability where we invested close to RM3.44 billion in capital expenditure over the last four years have borne meaningful impact as our digital platforms’ availabilities have remained above target and delivered strong growth in digital transactions and revenue.”