CIMB Group Holdings (CIMB) Q3 2024 earnings summary

Executive summary

• Net profit for 9M24 rose 13% year-on-year to MYR 5.93 billion, 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 a diversified ASEAN portfolio and robust topline growth in 3Q24.

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

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

• ROE for nine months reached 11.7%, and CET1 ratio stood at 15%, providing capital flexibility amid market volatility.

Financial highlights

• Net interest income grew 6.0% year-on-year, with non-interest income up 14.4% and treasury client sales up 18.7%.

• NIM banking book expanded for the third consecutive quarter, reaching 2.75% in Q3 2024 from 2.59% in Q4 2023.

• Loan growth in constant currency terms was 4.3% year-on-year, with commercial banking in Malaysia up 8% and consumer banking up 5.6%.

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

• Pre-provisioning operating profit rose 9.3% to RM9.18 billion.

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 pressure and normalize in Q4 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%.

• Management remains cautious due to geopolitical tensions and global economic uncertainty but expects positive home market growth.