CIMB Group Q3 earnings rise 31.3%, driven by non-interest income growth

CIMB Group Holdings Bhd reported a 31.3% increase in net profit for the third quarter ended September 30, 2023 (3Q23), reaching RM1.85 billion, driven by strong non-interest income.

However, weaker net interest income due to net interest margin compression offset some gains.

Quarterly revenue rose by 6.2% to RM5.31 billion, it told the stock exchange today.

No dividends were declared for the quarter.

For the nine-month period, CIMB’s net profit grew by 27.9% to RM5.27 billion, with revenue increasing by 6.9% to RM15.64 billion.

The positive performance is attributed to sustained operating income growth and lower provisions from a diversified ASEAN portfolio.

CIMB’s gross loans increased by 6.4% year-on-year to RM431.8 billion, and total deposits grew by 8.6% to RM490.3 billion.

The loan-to-deposit ratio was 88.1%.

The CASA ratio was 39.2%, with a 2.1% year-on-year increase in CASA balances. CIMB group CEO Datuk Abdul Rahman Ahmad highlighted positive growth in various segments and markets but expressed caution due to global political risks and the elevated interest environment.

The focus includes enhancing the CASA and deposit franchise, targeting specific segments, and monitoring costs and asset quality.

The affluent and wealth management business, sustainable finance, and Islamic finance solutions remain key focus areas.

CIMB’s shares closed at RM5.65 apiece today, reflecting a market capitalisation of RM60.26 billion. – TMR