CIMB net profit up 28.3% in 2024; special dividend proposed

The 7 sen special dividend is separate from the annual dividend of 36 sen per share.

CIMB Group has reported a net profit of RM6.98b for 2023, 28.3% higher than the preceding year.

Profit before tax is RM9.54b, 14% higher than a year ago. This translates to an earnings per share (EPS) of 65.5 sen with a return on average equity (ROE) of 10.7%, an improvement from the 9% ROE in 2022.

A second interim dividend of 18.5 sen per share has been proposed, which will bring the total proposed annual dividend to 36 sen per share. This would translate to a payout ratio of 55%, in line with the group’s dividend policy.

A special dividend payout of RM747m or 7 sen per share has also been proposed.

CIMB said that the higher profits were thanks to “robust operating income growth” resulting from solid loan and CASA growth from all its core markets. Lower provisions from risk management and recoveries also helped.

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Operating income for the year is RM21.02b, 5.9% higher than a year earlier, which CIMB attributed to high non-interest income (NOII). NOII grew 36.5% to RM6.39b from investment and market-related income. 

Net interest income (NII) fell 3.5% to RM14.63b.

Total gross loan growth momentum continued, rising 8.3% driven by stronger demand across targeted key markets and segments.

Total deposits grew by 8.1%. In addition, total CASA expanded strongly by 11.5%, leading to a CASA ratio of 41.2% as at December 2023.

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Cost-to-income ratio (CIR) was marginally higher at 46.9%, with FY2023 operating expenses rising by 6.9% from cost inflation and technology investments.

Total provisions declined significantly by 26.4%, attributed to the moderated credit environment and sustained improvement in asset quality from portfolio reshaping.