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.

• Liquidity strengthened, with LDR at 88% and a deposit-led strategy supporting asset growth.

• Portfolio reshaping included exiting less effective businesses and reallocating capital to consumer segments.

• Investments in technology doubled, improving operational resilience and reducing cyber incidents.

Financial highlights

• Net interest income grew 5.3% year-on-year to RM15.4 billion, non-interest income up 8.1%, and total income increased over 6%.

• Cost-to-income ratio improved to 46.7%, with costs up 5.6% year-on-year.

• Allowance coverage rose to 105.3%, credit costs reduced to 25 bps from 32 bps.

• Gross impaired loans ratio improved to 2.1% from 2.7% year-on-year.

• Record dividend payout of RM5.04 billion, with a 55% payout ratio and 5.7% yield.

Outlook and guidance

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

• ROE guidance for 2025 set at 11%-11.5%, with CET1 ratio target of at least 14%.

• Credit costs expected to normalize to 30-40 bps, mainly due to absence of prior write-backs in Singapore and normalization in Indonesia.

• Group NIM expected to be stable to minus 5 bps, with margin compression in Singapore, Thailand, and Indonesia.

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