Strong income drives CIMB to a 26.2% net profit growth in H1

An interim dividend of 17.5 sen per share has been proposed.

CIMB Group saw its net profits grow by double digits in the first six months of 2023, carried by strong income growth and lower provisions, and notably strong growth recorded in its Indonesia and Singapore businesses.

Net profit grew 26.2% to RM3.42b in H1, the Malaysia-headquartered bank’s latest financial results showed.

The bank has proposed an all-cash first interim dividend of 17.50 sen per share, increasing its dividend payout ratio from 50% to 55%. 

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Operating income grew 7.4% to RM10.33b. Net interest income remained muted due to continued heightened cost of deposits.

Total gross loans and deposits grew by 8.3% and 9.5%, respectively, compared to the first six months of 2022.

Cost-to-income ratio improved to a record low of 46% in H1. Operating expenses rose 6.2% to RM4.75b during the same period, CIMB Group said.