CIMB’s Q1 profit escalates 18% YoY

Thanks to a solid operating income performance and maintained costs.

CIMB Group’s net profit climbed 17.7% year-on-year (YoY) to $0.41b (RM1.94b), attributable to strong operating income growth and contained costs and provisions.

“The positive performance translates to an improvement in the Group’s annualised return on average equity (ROE) to 11.4%, as compared to 10.3% recorded in 1Q23, and earnings per share (EPS) of 18.2 sen,” the bank said in a company filing.

The company also saw a profit before tax (PBT) of $0.54b (RM2.57b) for the quarter, marking a 15.1% YoY.

This led to an improved annualised return on average equity (ROE) of 11.4%, up from 10.3% in 1Q23, and earnings per share (EPS) of 18.2 sen.

Operating income for Q124 rose by 12.6% YoY to $1.18b (RM5.63b), with both net interest income (NII) and non-interest income (NOII) contributing to this growth. 

NII increased by 7.7% YoY to $0.80b (RM3.79b) due to robust loan growth and NIM recovery, whilst NOII surged by 24.5% YoY to $0.39b (RM1.84b), bolstered by strong capital markets, investment-related income, and gains from the sale of non-performing loans.

Total gross loans grew by 7.0% YoY across key markets, with Singapore experiencing a 13.1% increase. 

Deposits rose by 8.2% YoY, driven by a strong 16.8% growth in CASA, resulting in an improved CASA ratio of 40.8% in March this year compared to 37.9% in March last year.

($1.00 = RM4.71)