CIMB Group Holdings Berhad (CIMB Group) achieved a strong financial performance with net profit of MYR 7.73 billion ($1.73 billion), up 10.7% for the financial year ended 31 December 2024 (FY24), compared to MYR 6.98 billion ($1.56 billion) in the preceding year. Profit before tax (PBT) increased by 9.0% year-on-year (YoY) to MYR 10.40 billion ($2.33 billion), translating to earnings per share (EPS) of 72.3 sen. The results led to a significant improvement in return on average equity (ROE) to 11.2%, up 50bps YoY. FY24 operating income rose 6.1% YoY to MYR 22.30 billion ($4.99 billion), contributed by growth in net interest income (NII) and non-interest income (NOII). NII was up 5.3% YoY to MYR 15.40 billion ($3.45 billion), driven by healthy loan growth, while NOII grew 8.1% YoY to MYR 6.90 billion ($1.54 billion) driven by strong client franchise business and trading income, improving NOII ratio to 31.0%, up 60bps YoY. The robust FY24 performance was also underpinned by disciplined cost controls and improvement in asset quality, supported by the group’s portfolio diversification strategy, which serves diverse client segments. CIMB Group’s businesses in Malaysia and Singapore outperformed, in line with growth seen in both economies while performance in Thailand continued to stabilise; its business in Indonesia remained resilient despite intense competition in the local market. Accordingly, CIMB Group proposed a second interim dividend of 20.00 sen per share, bringing the total proposed annual dividend to 47.00 sen per share. This translates to a record total dividend payout of MYR 5.04 billion ($1.12 billion). On a constant currency basis, CIMB Group’s total gross loans grew by a healthy 4.8% YoY, in line with markets. Pursuant to its deposit-led strategy, total deposits grew 5.2% YoY, while total current account saving account (CASA) balances expanded by 7.7% YoY, increasing the CASA ratio to 43.1% as at December 2024. The group’s cost-to-income ratio improved 20bps YoY to a sustainable 46.7%, as operating expenses remained under control, translating to a positive JAW. Pre-provisioning operating profit (PPOP) grew 6.6% YoY to MYR 11.88 billion ($2.66 billion). Total provisions declined by 5.5% YoY to MYR 1.50 billion ($336.2 million), attributed to the continued improvement in asset quality. Gross impaired loans (GIL) ratio was down 60bps YoY at 2.1% while allowance coverage reached an all-time high of 105.3%, surpassing pre-pandemic levels. The group continues to be well capitalised, as its common equity tier 1 (CET1) ratio remained strong at 14.6%, providing it future flexibility to absorb any potential increase in capital requirements. Performance in the fourth quarter (4Q24) was resilient, with 5.0% growth in net profit to MYR 1.80 billion ($403.43 million) compared to the same quarter in the previous year. Loan growth was healthy, up 4.8% from December 2023 and 2.4% from September 2024, in constant currency terms. Despite the rate cuts seen throughout the year in multiple markets, 4Q24 NIM was up 2bps to 2.17% compared to 4Q23, through disciplined asset pricing and deposit-led strategy which saw higher CASA inflows. This led to NII increasing 3.1%, offsetting a weaker NOII. Forward23+ strategic plan FY24 marked the completion of the Forward23+ strategic plan, which saw the group’s ROE improving from 2.1% in 2020 to 11.2% and delivering annualised total shareholders return of 34.6% from 2020 to 2024. The success of the Forward23+ strategic plan is driven by the successful reshaping of portfolios in the respective markets, hard wiring of a new corporate culture, an unwavering focus on improving asset quality, and improving efficiencies and resiliencies. As a purpose driven organisation, CIMB remains strongly committed to advancing sustainability, driving meaningful environmental and social impact through collaboration with clients, customers and stakeholders. The group has made progress in its sustainability journey and mobilised MYR 117.0 billion ($26.2 billion) in Green, Social, and Sustainable Impact Products and Services (GSSIPS), surpassing its MYR 100 billion ($22.4 billion) target ahead of schedule. CIMB is also the first Malaysian bank, which has committed and announced decarbonisation targets in six sectors. Outlook Novan Amirudin, group CEO of CIMB Group said, “We are pleased that our strategy to pivot towards client franchise income, pricing discipline and deposits have led to a strong FY24 performance. The results reflect the success of the Forward23+ strategic plan, credited to portfolio reshaping, efficiency and resiliency, and improved asset quality. Our focus to be the leading focused ASEAN bank proves to benefit us, helping us to prioritise our customers.” Moving into 2025, the group will remain cautious in its outlook and be vigilant in navigating external and geopolitical uncertainties. While challenges persist, resilience is expected across ASEAN markets, with core financial performance anticipated to continue on a positive trajectory, in tandem with profitability prioritisation without compromising investments and resiliency. “As we chart the group’s next phase of growth with our new strategic plan, we remain steadfast as a purpose-led organisation in our commitment to advancing customers and society across ASEAN. We will prioritise optimising our capital and resources and continue to drive sustainable growth, making this organisation simpler, better and faster," Amirudin said. Re-disseminated by The Asian Banker
