KUALA LUMPUR (Aug 30): CIMB Group Holdings Bhd's net profit rose 18.13% to RM1.28 billion in the second quarter ended June 30, 2022 (2QFY22), from RM1.08 billion a year ago, driven by higher operating income, contained cost escalation as well as lower provisions across key markets.
This translated into earnings per share (EPS) of 12.3 sen versus 10.8 sen in 2QFY21.
Quarterly revenue increased 5.68% to RM4.88 billion from RM4.62 billion previously, according to the group's Bursa Malaysia filing.
For the cumulative first half ended June 30, 2022 (1HFY22), CIMB's core net profit increased 18.4% to RM3.1 billion from RM2.62 billion in the preceding year.
This translated into EPS of 30 sen and a core annualised 1HFY22 return on average equity of 10.4%.
CIMB proposed a first interim dividend of 13 sen per share, comprising 2.6 sen in cash and 10.4 sen in dividend reinvestment scheme.
This amounts to RM1.36 billion, resulting in a dividend payout ratio of 50%, which is in line with the group's dividend policy.
CIMB said its 1HFY22 operating income was up by 2.7% year-on-year (y-o-y) to RM9.6 billion. Out of this, net interest income grew 3.8% to RM7.22 billion, largely from strong loan growth despite slight contraction of net interest margin (NIM) y-o-y.
This was partially offset by a marginal decline in non-interest income (NOII) y-o-y to RM2.4 billion, due to weaker trading and foreign exchange income arising from the challenging investment environment.
However, NOII expanded 1.9% quarter-on-quarter due to increased fees and commissions, as well as non-performing loan recoveries, said CIMB.
Total gross loan and deposit growth momentum continued, driven by key markets and business segments.
Total current account savings account (CASA) expanded by 7.3%, which in turn improved the CASA ratio from 41.6% in June 2021 to 42.3% in June 2022.
The group's cost-to-income ratio recorded an improvement y-o-y to 46.5%, with core operating expenses increasing only 1.7% to RM4.47 billion in 1HFY22 due to higher marketing expenses and planned technology investments.
CIMB group chief executive officer Datuk Abdul Rahman Ahmad said strong top-line growth, continued cost discipline and lower provisions across all businesses and markets contributed to the positive performance in 1HFY22.
"We are seeing an upward trend on [our loans, recording healthy growth of 6.8%, and deposits, recording healthy growth of 5.7%,] as efforts to reshape our portfolio are starting to crystallise.
"We are positive on the resilience of our businesses across key markets with the group's healthy liquidity and capital positions, which will continue to support our business growth and withstand any market volatility," he said in astatement.
On prospects, he said CIMB maintains a cautious stance for the remainder of 2022 due to various macroeconomic headwinds.
"Nonetheless, we are hopeful of continued economic growth in markets we operate in view of the resumption of economic activity across the region with inflows of investment," Abdul Rahman added.
CIMB shares closed 0.56% or three sen lower at RM5.37 on Tuesday (Aug 30) for a market capitalisation of RM56.3 billion.