BUSINESS

CIMB GROUP'S 3Q PROFIT RISES TO RM1.85 BLN HIGHER OPERATING INCOME, LOWER PROVISIONS

30/11/2023 07:24 PM

KUALA LUMPUR, Nov 30 (Bernama) -- CIMB Group Holdings Bhd’s net profit surged to RM1.85 billion in the third quarter ended Sept 30, 2023 (3Q 2023), from RM1.41 billion in the same quarter last year, on the back of higher operating income growth and lower provisions.

In a filing with Bursa Malaysia, the banking group said its revenue jumped to RM5.31 billion in 3Q 2023 from RM5.0 billion previously.

The group said its operating income in the quarter under review grew by 6.2 per cent year-on-year (y-o-y) to reach RM5.31 billion compared to the previous corresponding quarter.

“We are pleased with the performance this quarter despite continued elevated deposit competition in Malaysia.

“Our return on equity (ROE) continues to improve, driven by its reshaped portfolio and improved credit cost performance,” it said.

CIMB Group said positive growth momentum was seen in areas the group invested in, namely consumer and commercial in Malaysia, CIMB Digital Assets, and across its key markets of Indonesia and Singapore.

"This has positioned CIMB Group to achieve its financial year 2023 targets as the group approaches the year-end," it said.

For the nine months of 2023 (9M 2023), CIMB’s net profit rose 28 per cent to RM5.27 billion from RM4.11 billion in the same period of 2022, while revenue increased to RM15.64 billion in 9M23 against RM14.62 billion.

CIMB Group said its operating income for the period increased 7.0 per cent y-o-y to RM15.64 billion, with net interest income dipping slightly by 1.8 per cent y-o-y, largely due to net interest margin compression,” it said.

It said total gross loans growth momentum continued, rising 6.4 per cent y-o-y, underpinned by strong demand across markets and segments, whilst deposits grew 8.6 per cent y-o-y despite persistent competition for deposits in all markets.

"Total current account saving account (Casa) balances expanded by 2.1 per cent y-o-y, bringing about a Casa ratio of 39.2 per cent as at September 2023," it said.

In a separate statement, group chief executive officer Datuk Abdul Rahman Ahmad said that as the group approaches the final year of its Forward23+ strategic plan, it remains focused on enhancing its Casa and deposit franchise, and growing in targeted segments whilst continuing to keep a close watch on cost and asset quality.

“Among our focus segments are our affluent and wealth management business with particular emphasis on transaction banking and the regional Asean network business.

“We will continue to leverage the growing interest and demand among clients for sustainable and Islamic finance solutions, areas in which CIMB has built a strong track record, having pioneered various landmark transactions and innovative offerings over the past few years,” he added.

-- BERNAMA

 


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