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 portfolio, strong revenue growth of 8.7% from both NII and NOII, and disciplined cost control.

• Achieved two consecutive quarters of NIM expansion, with H1 2024 NIM up 7bps compared to H2 2023, though down 5bps YoY to 2.20%.

• Asset quality improved, with GIL ratio at 2.5% and loan loss coverage at 101.2%.

• Interim dividend of MYR 0.20 per share and special dividend of MYR 0.07 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 to RM11.23 billion, 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% YoY.

• 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, with liquidity ratios above regulatory requirements.

Outlook and guidance

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

• NIMs expected to remain stable, with potential for margin expansion if liquidity improves.

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

• Confident in achieving 2024 ROE target of 11%-11.5%; new strategic plan to be announced in early 2025.

• Management remains cautious on macro outlook due to global and regional uncertainties.