CIMB Group Holdings (CIMB) Q2 2024 earnings summary

Executive summary

• Net profit rose 14% year-on-year to MYR 3.9 billion for H1 2024, driven by diversified ASEAN operations, strong revenue growth of 8.7% year-on-year from both NII and NOII, and disciplined cost control.

• Achieved two consecutive quarters of NIM expansion, with H1 2024 NIM up 7bps compared to 2H23, reversing last year's industry-wide NIM compression.

• Asset quality improved, with provisions down 8.9% year-on-year, GIL at 2.5%, and loan loss coverage at 101.2%.

• Interim dividend of 20 sen per share and special dividend of 7 sen per share proposed, maintaining a 55% payout ratio.

• Annualised ROE reached 11.4% for H1 2024.

Financial highlights

• Revenue up 8.7% year-on-year, with NII at RM7.65 billion (+6.7% YoY) and NOII at RM3.58 billion (+13.2% YoY).

• Loans grew 4.2% year-on-year, funded by 2.7% deposit growth and 9.2% CASA growth; CASA ratio at 40.9%.

• Cost-to-income ratio improved by 40bps to 45.6%, with tech spend up 9.4% year-on-year.

• PBT for H1 2024 was RM5.30 billion (+12.4% YoY); EPS at 36.5 sen (+13.7% YoY).

• CET1 ratio at 14.5% as of June 2024, above the >13.5% target.

Outlook and guidance

• Loan growth guidance maintained at 5%-7% for 2024, with expectations of acceleration in H2.

• NIMs expected to remain stable, with potential for margin expansion if liquidity improves post-Fed rate cuts.

• FY24 guidance: ROE 11.0–11.5%, CIR <46.9%, loan loss charge 30–40bps, CET1 ≥13.5%.

• Focus remains on disciplined capital allocation, risk management, digital and operational resiliency, and sustainability.

• New strategic plan to be announced in early 2025.