CIMB Group's net profit narrowed to RM1.43 bln in Q1

31/05/2022 07:45 PM

KUALA LUMPUR, May 31 (Bernama) -- CIMB Group Holdings Bhd’s net profit narrowed to RM1.43 billion in the first quarter ended March 31, 2022 (Q1FY22) from RM2.46 billion a year earlier due to the revaluation gain of RM1.16 billion as well as the impact of Cukai Makmur.

Revenue eased to RM4.74 billion from RM5.91 billion previously, mainly affected by the weaker investment environment, it said in a filing with Bursa Malaysia today. 

The financial services group said the revaluation gain was from the deconsolidation of TNG Digital in Q1FY21.

It said loan growth regained momentum, increasing by 4.9 per cent year-on-year (y-o-y) on the back of economic recovery positively impacting most markets and segments, especially in consumer banking where loans grew by 6.9 per cent y-o-y.

“Deposits also increased by seven per cent driven by strong current account savings accounts (CASA) growth of 9.9 per cent y-o-y, which translates to an improvement in CASA ratio from 42.3 per cent recorded in March 2021 to 43.5 per cent in March 2022,” it said.

 CIMB Group said its capital position remained strong and above target with its common equity tier 1 (CET1) ratio at 14.5 per cent as at March 2022, up from 12.9 per cent as at March 2021 and 14.5 per cent as at Dec 2021.

Group chief executive officer Datuk Abdul Rahman Ahmad said the group’s capital and liquidity positions as well as asset quality continued to strengthen, demonstrating the strength and resilience of its business franchise amidst the current operating environment.

“We are particularly encouraged to see the positive traction in loan growth as the strategy to reshape our portfolio is starting to bear results.

“At the same time, ongoing cost optimisation efforts have contributed to lower operating expenses and improvement in cost-to-income ratio (CIR), notwithstanding higher expenses related to technology and operational investments,” he said.

He said the group is expected to spend RM1 billion in FY22 to drive further digitalisation as well as improve technology and operational resiliency.

On prospect, he said the group remained optimistic for the remainder of 2022 given the anticipated recovery of regional economies as well as expansion in domestic demand. 

“However, we also remain cautious on the heightened risk of slower economic growth arising from the impact of inflationary pressures and geopolitical uncertainties,” he added. 





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