CIMB logs 14% net profit growth in H1; interim dividend is 20 sen

CEO Novan Amirudin attributed this to operating income growth, amongst others.

CIMB expanded its net profit by 14% year-on-year (YoY) to MYR3.9b in the first six months of 2024, its latest interim results showed.

The group proposed a first interim dividend of 20 sen per share, with a special dividend of 7 sen per share. Payout ratio is 55%, based on the H1 net profit.

Annualised return on average equity (ROE) is 11.4% in H1, versus 10.6% in H1 2023.

Profit before tax is 12.4% YoY higher at MYR5.3b, with growth driven by the bank’s ASEAN portfolio, said Novan Amirudin, group CEO of CIMB Group.

“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,” Amirudin said in a press release announcing CIMB’s latest financial results.

“To strengthen our operational resiliency, we have invested and will continue to invest further in technology, systems and processes to continue providing a secure and seamless banking environment for all our customers,” he added.

Operating expenses rose by 7.9% YoY as a result of increased investments in technology, CIMB said.

Operating income for the first six months of 2024 rose 8.7% YoY to MYR11.23b.

Net interest income (NII) rose 6.7% to MYR7.65b on the back of net interest margin (NIM) and asset growth. NIM expanded 7 basis points (bps) in H1.

Loan growth was 4.2% YoY for the period, with growth seen in all segments.

Deposits rose by 2.7% YoY.

Non-interest income (NOII) improved by 13.2% to MYR3.58b, whilst NOII ratio is 31.9% vs 30.6% in H1 2023. This was driven by stronger fees, treasury client sales and trading, CIMB said.

Cost-to-income ratio is 45.6%, 40 basis points higher than in H1 2023. 

In other news, CIMB recently launched a green loan for small and medium enterprises, and partnered with DHL to reduce its air shipments' carbon emissions.