In its filing with Bursa Malaysia, CIMB attributed the improved performance to stronger operating income from robust loan growth, net interest margin (NIM) expansion, stringent cost management, lower provisions from prudent risk management, recoveries, and portfolio de-risking.
For Q4 FY2022, its net profit grew 55% to RM1.32 billion from RM854.51 million in the corresponding quarter the previous year. This was supported by operating income growth of 13.8% and significantly lower provisions.
Full-year revenue increased marginally by 1.66% to RM19.83 billion from RM19.51 billion in FY2021.
Fourth quarter revenue rose 12.8% to RM5.21 billion from RM4.58 billion in Q4 FY2021, driven by strong loan growth and improved NIM, as core non-interest income (NOII) also increased from stronger fee income and higher asset recoveries.
The group declared an all-cash second interim dividend of 13 sen per share, bringing the total annual dividend to 26 sen per share.
Loan growth momentum
The group’s total gross loan growth momentum increased 7.7% for the year on strong demand across key market segments, while total deposits grew by 4.6%.
However, total current account saving account (Casa) contracted by 1.8% from expected attrition in line with post-pandemic economic growth, leading to a Casa ratio of 39.9% as of December 2022.
On its segmental performance, group consumer banking operating income for FY2022 grew by 8.3%, driven by loan growth and NIM expansion.
Net interest income (NII) and non-interest income (NOII) increased by 9.7% and 4.2% respectively as consumer loans grew by 7.2% driven by all core markets, while deposits grew by 7.3% from higher fixed deposits.
For group commercial banking, operating income grew by 7.8% on higher operating income and lower provisions.
NII increased by 7.1% from loan growth, higher NIM and strong Casa franchise performance, while NOII increased 11.3% from higher fees and commissions in Malaysia, Singapore and Thailand. Its commercial loans also grew by 6.1% while deposits increased by 11.6%, contributed by strong Casa growth.
Approaching 2023 with cautious optimism
CEO Abdul Rahman Ahmad said the group was extremely pleased with the FY2022 results.
“This strong performance is a testament to the progress made under our mid-term Forward23+ strategic plan, by reshaping our portfolio and focusing investments into profitable areas,” he said.
In its filing, the bank said FY2022’s performance exceeded targets across all profitable metrics, including return on equity (ROE) and cost-to-income ratio (CIR), and that the group continues to be well capitalised as its common equity tier 1 (CET1) ratio remained strong at 14.5% as of December2022.
The group is approaching 2023 with “cautious optimism” while recognising uncertainties brought about by global headwinds such as elevated inflation, monetary policy tightening, sustained political tensions, still-prevalent Covid-19 threats, and a possible global recession.
CIMB expects a continuation of the positive financial performance in 2023 with prudent loan growth, controlled loan loss provisions, and stringent cost management.
Its shares closed 7 sen or 1.26% higher at RM5.61 today, with a market capitalisation of RM59.83 billion.