CIMB Group Holdings (CIMB) Q4 2024 earnings summary

Executive summary

• Net profit rose 10.7% year-on-year to RM7.73 billion for FY24, with ROE at 11.2% and CET1 at 14.6%.

• Operating income increased 6.1%, driven by 5.3% growth in net interest income and 8.1% growth in non-interest income.

• Record total dividend payout of RM5.04 billion (47 sen/share), with annualized TSR of 34.6%.

• Portfolio reshaping, disciplined cost management, and investments in technology and sustainability initiatives contributed to improved asset quality and shareholder returns.

• Diversified ASEAN portfolio and deposit-led strategies supported strong performance.

Financial highlights

• Net interest income grew 5.3% year-on-year to RM15.4 billion; non-interest income expanded 8.1%, with treasury client sales up 17.4%.

• Cost-to-income ratio improved to 46.7%, with costs up 5.6% year-on-year and pre-provisioning operating profit up 6.6%.

• Gross impaired loans ratio improved to 2.1% from 2.7% last year; allowance coverage increased to 105.3%.

• Dividend payout ratio reached 55% (excluding special dividend), with a 5.7% yield.

• Loan growth was 4.8% YoY on constant currency; deposits rose 5.2%, with CASA ratio at 43.1%.

Outlook and guidance

• Expecting healthier loan growth in 2025, targeting 5%-7% group loan growth, mainly from Malaysia.

• ROE guidance for 2025 is 11%-11.5%; CET1 ratio targeted above 14%, and dividend payout ratio to be maintained at 55%.

• Credit costs projected to normalize to 30-40 basis points, with stable cost-to-income ratio.

• NIM guidance is stable to -5 basis points at group level, with some compression expected in Singapore, Thailand, and Indonesia.

• Strategic focus includes capital optimization, CASA franchise strengthening, digital delivery, and advancing sustainability.