Its revenue grew slightly by 5.5% to RM5 billion, driven mostly by non-interest income (NOII) which increased 24.3% year-on-year (y-o-y) to RM1.48 billion.

Meanwhile, net interest income dropped marginally y-o-y to RM3.52 billion due to heightened cost of deposits but was partially offset by strong loan growth.

The performance translates to a strong improvement in annualised return on average equity (ROE) of 10.3%, as compared to 9.6% recorded in Q1 FY2022, and earnings per share of 15.4 sen.

“CIMB’s total gross loans increased 7.4% y-o-y across key markets and segments, especially in Indonesia which grew 10.1% y-o-y,” it said in a statement today.

Compared to the previous quarter, the group saw a slight contraction in revenue by 4.3%, whilst net profit grew 24.2% from RM1.32 billion.

The group’s capital position remains strong and above target with its common equity tier 1 (CET1) ratio at 14.3% as at March 2023.

CIMB CEO Abdul Rahman Ahmad was pleased with the strong performance and contribution from Indonesia.

“Our positive Q1 FY2023 performance was contributed by robust NOII expansion, strong loan growth momentum across all segments of our business and sustained asset quality and cost discipline,” he said.

“We take a cautious view as we approach the second half of 2023 given the economic uncertainty due to elevated inflation and interest rates,” he added.

The bank re-emphasised its efforts to implement the necessary security initiatives as mandated by Bank Negara Malaysia.

“Nonetheless, we expect the challenging market environment caused by heightened deposit competition to moderate within our key operating markets, and we are committed to making further investments to continue reshaping our portfolio,” Abdul Rahman said.

At the close of trade, CIMB’s share price was down 1.48% or 7 sen to RM4.82, giving it a market capitalisation of RM51.41 billion.