KUALA LUMPUR, Aug 30 — CIMB Group Holdings Bhd’s net profit surged to RM1.28 billion in the second quarter ended June 30, 2022 (Q2 2022) from RM1.08 billion in the same quarter last year, thanks to a stronger operating income and lower operating expenses.
Revenue rose to RM4.88 billion from RM4.62 billion previously, the banking group said in a filing to Bursa Malaysia today.
CIMB said its operating income of RM4.89 billion during the quarter under review was 5.7 per cent higher on the back of improvement in both net interest income (NII) and non-interest income (NOII).
In a separate statement, group chief executive officer Datuk Abdul Rahman Ahmad said strong topline growth, continued cost discipline and lower provisions across all businesses and markets had contributed to the positive performance in the first half of 2022 (1H 2022).
“We are seeing an upward trend in our loans and deposits, which recorded healthy growth of 6.8 per cent and 5.7 per cent, respectively, as efforts to reshape our portfolio are starting to crystallise,” he said.
CIMB Group’s total gross loans in 1H 2022 increased by 6.8 per cent to RM394.3 billion year-on-year while total deposits grew by 5.7 per cent y-o-y to RM444.3 billion.
As for CIMB Islamic, operating income grew by 8.0 per cent y-o-y in 1H 2022 with Islamic financing growing by 15.7 per cent, while deposits grew by 8.0 per cent.
The group has proposed a first interim dividend of 13 sen per share in respect of the financial year ending December 31, 2022 (FY2022), comprising 2.60 sen in cash and 10.40 sen in dividend reinvestment scheme.
This amounts to RM1.36 billion, resulting in a dividend payout ratio of 50 per cent, which is in line with the group’s dividend policy.
Moving forward, Abdul Rahman said the group remained confident of achieving positive financial performance and is currently on track to exceed its FY2022 targets across all profitability metrics.
He said the group will continue to be guided by its Forward23+ strategic plan to strengthen its position to be the leading focused Asean bank, building on the positive momentum of its asset growth, contained cost escalation and moderate credit cost.
“We are committed to continuing to facilitate and support our customers’ financial health and resiliency in transitioning towards economic recovery, and at the same time providing complete banking and digital solutions to cater to the needs of all our customers through technology innovations and investments,” he added.
Meanwhile, during a virtual press conference on the bank’s 1H 2022 financial performance, Abdul Rahman said the group expects loan growth to moderate as the interest rate rises and cost of interest servicing becomes more expensive.
“The demand for loan will be affected, but at the moment, loan growth has been very strong in the first half of the year, predominantly due to the recovery and resumption of economic activities.”
Nevertheless, he said the group expects to meet its loan growth projection target of between five and six per cent for this year.
On outlook for dividend, Abdul Rahman said the group would continue to maintain its policy of between 40 and 60 per cent and interim dividend to be based on 50 per cent payout ratio.
Regionally, he said Indonesia, Thailand and Singapore have been contributing towards the group’s positive performance in 1H 2022.
“This is where we are starting to see the benefits of the Asean diversification strategy that CIMB has embarked on where we reshaped our portfolio particularly in Indonesia and Thailand,” he said.
He added that the group has also achieved its target of mobilising RM30 billion in sustainable finance, which was two years ahead of the initial target. — Bernama
