KUALA LUMPUR (Feb 28): CIMB Group Holdings Bhd racks up record earnings for the financial year ended Dec 31 (FY18), a net profit of RM5.58 billion in FY18, up 24.8% year-on-year (y-o-y) from RM4.48 billion.

In a bourse filing, the group said its net profit for the fourth quarter ended Dec 31, 2018 rose 5.37% to RM1.12 billion from RM1.06 billion in the same quarter a year ago. Earnings per share rose to 11.67 sen from 11.57 sen previously.

FY18 revenue was lower at RM17.38 billion compared to RM17.63 billion a year earlier.

CIMB proposed a second interim net dividend of 12 sen per share.

In a separate statement, CIMB group chief executive Tengku Datuk Seri Zafrul Aziz said the notable FY18 results was underpinned by strong performances from consumer and commercial banking, as well as lower provisions and costs.

"Our ROE (return on equity) is higher at 11.4% whilst CET1 strengthened to 12.6% and loan loss charge improved to 0.41%," he said.

Meanwhile, the banking group said CIMB Islamic's FY18 profit before tax increased by 27.2% y-o-y to RM1.03 billion, driven by strong 21.1% operating income growth due to a healthy balance sheet growth.

It said CIMB Islamic's gross financing assets increased by 22.8% y-o-y to RM71.0 billion, accounting for 20.5% of total group loans.

Total deposits (including investment account) rose by 18.5% y-o-y to RM78.0 billion.

On prospects, Tengku Zafrul said CIMB remains cautious for 2019 in view of sustained external headwinds.

"Global economic and political developments will have an impact on our markets. In addition, we are also watching elections and political developments in Indonesia and Thailand closely. Notwithstanding these uncertainties, we expect ASEAN's growth rate to remain robust.

"As for the group, CIMB is now in its transformative growth phase, and we are confident that our Forward23 five-year strategic plan will place us on a sustainable growth path, with a focus on advancing the interests of not only our customers, but also society," he said.