KUALA LUMPUR (Feb 28): CIMB Group Holdings Bhd’s (KL:CIMB) net profit for the fourth quarter grew nearly 5% to RM1.8 billion, from RM1.72 billion a year ago, lifting its annual net profit to a record high of RM7.73 billion in the financial year ended Dec 31, 2024 (FY2024). 

CIMB, the country's second biggest bank by assets, declared a second interim dividend of 20 sen, bringing the total annual dividends declared for the full year to a record high of 47 sen per share, according to a filing with Bursa Malaysia on Friday.

The banking group’s net interest income rose marginally to RM2.79 billion in 4QFY2024, while non-interest income was down 5.72% to RM782.34 million. Income from Islamic banking operations grew 7.29% to RM1.2 billion.

CIMB's net interest margin — a measure of profitability from interest charged on loans after paying returns on deposits — was up two basis points (bps) to 2.17% from the same period a year ago.

For the full FY2024, net interest income went up 5.3% to RM15.40 billion on healthy loan growth, while non-interest income grew 8.1% to RM6.90 billion, driven by strong client franchise business and trading income. 

Moving into FY2025, CIMB group chief executive officer Novan Amirudin said that the group will remain cautious, and be vigilant in navigating external and geopolitical uncertainties. 

“While challenges persist, we expect resilience across our Asean markets where we operate, and anticipate our core financial performance to continue on a positive trajectory, in tandem with profitability prioritisation, without compromising investments and resiliency,” Novan said in a statement.

CIMB's total gross loans grew by 4.8% year-on-year (y-o-y), in line with the market. Its total deposits grew 5.2% y-o-y, while its total current account saving account (Casa) balances expanded by 7.7% y-o-y, increasing the Casa ratio to 43.1% as at end-2024.

The cost-to-income ratio improved 20 bps y-o-y to 46.7%, as the bank’s operating expenses remained under control, the filing showed. 

Pre-provisioning operating profit rose 6.6% y-o-y to RM11.88 billion, while total provisions fell 5.5% to RM1.50 billion, as asset quality continued to improve.

“The gross impaired loans ratio was down 60 bps y-o-y at 2.1%, while allowance coverage reached an all-time high of 105.3%, surpassing pre-pandemic levels,” CIMB said.

CIMB’s common equity Tier 1 capital — a measure of a bank’s capital strength based on the highest quality of regulatory capital — stood at 14.6%.

At 4pm on Friday, CIMB shares were traded at RM8.11, valuing the banking group at RM87 billion — 1.25 times its book value of RM6.45 per share. The stock has climbed 49% since January last year.

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