CIMB Group Holdings (CIMB) Q3 2024 earnings summary

Executive summary

• Net profit for 9M24 rose 12.6% year-on-year to RM5.93 billion, with annualised ROE at 11.7% and CET1 at 15.0%, driven by strong ASEAN portfolio performance, especially in Malaysia and Singapore, with Indonesia resilient and Thailand stabilizing.

• Operating income increased 8.5% year-on-year, leveraging diversified growth across markets.

• Cost-to-income ratio improved to 45.9%, with continued investment in technology and efficiency initiatives.

• Asset quality strengthened, with gross impaired loans ratio down to 2.3% and allowance coverage at 102.6%.

• EPS for 9M24 was 55.5 sen, up from 49.37 sen year-on-year.

Financial highlights

• Net interest income for 9M24 was RM8.57 billion, up from RM8.31 billion year-on-year; non-interest income grew 14.4% year-on-year to RM5.39 billion.

• NIM banking book expanded for the third consecutive quarter, reaching 2.75% in 3Q24 from 2.59% in 4Q23.

• Cost-to-income ratio improved 40bps year-on-year to 45.9%, with operating expenses under control.

• Loan growth in constant currency terms was 4.3% year-on-year, in line with market trends.

• Loan loss charge reduced to 25bps for 9M24, with total provisions down 3.9% year-on-year.

Outlook and guidance

• Full-year 2024 ROE guidance maintained at 11%-11.5%, with cost-to-income ratio, asset quality, and CET1 expected to be close to earlier aspirations.

• NIM expected to face some compression in Q4 2024 due to intensified competition for liquidity and seasonal factors.

• New strategic plan to be announced in Q1 2025, focusing on building a stronger deposit franchise and sustainable cost optimization.

• Loan growth guidance at 4–5% for FY24; cost-to-income ratio target below 46.9%.

• Special dividends unlikely for the remainder of the year; payout ratio maintained at 55%.