KUALA LUMPUR (Feb 28): CIMB Group Holdings Bhd's net profit rose 24% year-on-year (y-o-y) in the fourth quarter ended Dec 31, 2017 (4QFY17) to RM1.06 billion from RM854.39 million on overall better performance.

CIMB told Bursa Malaysia today that group revenue increased 5% to RM4.52 billion from RM4.31 billion a year ago. This brought earnings per share to 11.57 sen compared to 9.67 sen per share in 4QFY16.

The group declared a second interim dividend of 12 sen per share for the financial year ended Dec 31, 2017, representing a 51% payout ratio for FY17.

It said on a y-o-y basis, it recorded a 4.7% growth in operating income in the quarter which was underpinned by the 17.3% improvement in non-interest income. Consumer banking profit before tax (PBT) grew 14.8% y-o-y from lower provisions in Indonesia, while regional commercial banking PBT was 16.7% lower y-o-y from higher provisions, it said.

Wholesale banking PBT had increased 29.6% y-o-y, owing to improved performance across all business units given the better capital markets, it added.

"Group asset management and investments (GAMI) PBT was 54.2% higher y-o-y due to better performance in public markets, while group funding PBT rose 67.7% from lower funding costs," said CIMB.

For the full year, CIMB's net profit climbed 26% y-o-y to RM4.48 billion versus RM3.56 billion in the previous year. Revenue rose 10% to RM17.63 billion from RM16.07 billion a year ago.

CIMB group chief executive Tengku Datuk Seri Zafrul Aziz said the bank is optimistic and confident of achieving its T18 targets on the back of continued growth momentum in loan growth and asset quality in Malaysia and across the region.

He added that CIMB's cost-to-income ratio for the full year came in at 51.8% while its common equity tier 1 (CET1) strengthened to 12.1% following sustained capital management efforts.

"This year will also see us complete our presence in all 10 Asean countries with our first branch opening in the Philippines by end-2018. We are also excited to launch our digital banking proposition in Vietnam in 1H18.

"We strongly believe that these, coupled with our strengthened foundation, strategic partnerships and extensive Asean network will help us deliver real value to all our stakeholders and further entrench CIMB's position as a leading Asean universal bank," Zafrul said in a statement today.

CIMB shares closed down three sen or 0.41% at the noon break to RM7.26, with 6.93 million shares traded.