CIMB Group's net income up 15.3% in Q1

Its net income showed a 15.3% climb year-on-year.

For the first three months of the year, CIMB Group showed a net income of RM1.64b ($360m), up 15.3% year-on-year (YoY).

Its net profits were driven by a robust operating income which also increased 5.5% YoY to RM5.0b. Whilst non-interest income (NOII) surged 24.3% YoY to RM1.48b ($320m).

However, net interest income (NII) inched down 0.8% YoY to RM3.52b ($760m) as net interest margin (NIM) compressed due to high deposit competition but was countered by stable loan growth.

Profit prior to tax jumped 9.2% YoY to RM2.24b ($490m), compared with the RM2.05b ($440m) in the same period last year.

“The performance translates to a strong improvement in an annualised return on average equity (ROE) of 10.3%, as compared to 9.6% recorded in 1Q22, and earnings per share (EPS) of 15.4 sen,” said CIMB Group in a statement.

ALSO READ: CIMB Bank and OxPay join forces for digital payment solutions

The bank also saw total gross loans rise 7.4% YoY in all key markets and segments. Further, its deposits also increased 6.1% YoY while Current Account Savings Account (CASA) fell amidst an increase in consumer expense post-pandemic economic growth.

Additionally, CIMB's migration to higher-yield term deposits has resulted in a lower CASA ratio of 37.9%.

Cost-to-income ratio (CIR) showed improvement YoY, reaching 46.9%. This was due to a 2.9% increase in operating expenses in the first quarter, primarily because there were no non-recurring expenses recorded in the previous year, said CIMB.

Despite the absence of recoveries last year, total provisions were contained, rising only 5.0% to RM445m ($96.5m).

(RM1.00 = $0.22)