KUALA LUMPUR — Feb. 28, 2019: CIMB Group Holdings reported a 25 per cent increase in net profit to a record high of RM5.58 billion in the last financial year ending December 31 despite a decline in revenue to RM17.38 billion from RM17.63 billion previously.
According to Group Chief Executive Tengku Datuk Seri Zafrul Aziz, the notable result was underpinned by strong performances from consumer and commercial banking, as well as lower provisions and costs.
Return on equity was higher at 11.4 per cent while common equity tier one (CET1) ratio strengthened to 12.6 per cent and loan loss charge improved to 0.41 per cent.
It informed Bursa Malaysia today that the group’s total gross loans grew by 7.0 per cent year-on-year (y-o-y), supported by 10.5 per cent y-o-y growth in Malaysia while the loan to deposit ratio stood at 91.2 per cent compared with 90.8 per cent a year earlier.
CIMB Islamic’s FY18 profit before tax (PBT) increased by 27.2 per cent y-o-y to RM1.03 billion, driven by strong 21.1 per cent operating income growth due to a healthy balance sheet growth.
Non-Malaysia PBT contribution to the group stood at 36 per cent in FY18 compared with 31 per cent in FY17. Indonesia’s PBT decreased by 1.6 per cent y-o-y to RM1.35 billion. However, excluding forex translation effects, Indonesia’s PBT expanded 11.4 per cent y-o-y in line with CIMB Niaga’s improving performance.
Thailand’s PBT contribution of RM399 million was a 116.8 per cent y-o-y increase, mainly from improvements in consumer and lower provisions, while total PBT contribution from Singapore was 23.7 per cent higher y-o-y at RM438 million, mainly from savings on the deconsolidation of CSI core processing solution.
The group declared a second interim net dividend of 12.00 sen per share to be paid via cash or an optional dividend reinvestment scheme. For FY18, the total dividend amounted to 25.00 sen or RM2.37 billion, translating to a dividend payout ratio of 50.8 per cent of FY18 business-as-usual profits.
On outlook, Zafrul said the group remains cautious for 2019 in view of sustained external headwinds.
“Global economic and political developments will have an impact on our markets. In addition, we are also watching elections and political developments in Indonesia and Thailand closely.
“Notwithstanding these uncertainties, we expect Asean’s growth rate to remain robust. As for the group, CIMB is now in its transformative growth phase, and we are confident that our strategic plan will place us on a sustainable growth path, with a focus on advancing the interests of not only our customers, but also society,” he added. — Bernama