KUALA LUMPUR: CIMB Group Holdings reported a 25% increase in net profit to a record high of RM5.58 billion for the financial year ended Dec 31, 2018 (FY18) from RM4.48 billion in the preceding year.
Revenue, however, declined to RM17.38 billion from RM17.63 billion previously, it said in a filing with Bursa Malaysia today.
Basic earnings per share increased to 59.67 sen from 49.63 sen before.
Group chief executive Tengku Zafrul Aziz said the notable FY18 results arose from strong performances from consumer and commercial banking as well as lower provisions and costs.
“Our return on equity was higher at 11.4% while the common equity tier one (CET1) ratio strengthened to 12.6% and the loan loss charge improved to 0.41%,” he said.
The group’s total gross loans grew by 7.0% year-on-year (y-o-y), supported by 10.5% y-o-y growth in Malaysia.
The loan to deposit ratio stood at 91.2% compared with 90.8% as at end-December 2017.
CIMB Islamic’s FY18 profit before tax (PBT) increased by 27.2% y-o-y to RM1.03 billion, driven by a strong 21.1% operating income growth due to a healthy balance sheet growth.
Non-Malaysia PBT contribution to the group stood at 36% in FY18 compared with 31% in FY17.
Indonesia’s PBT decreased by 1.6 % y-o-y to RM1.35 billion. However, excluding forex translation effects, Indonesia’s PBT expanded 11.4% y-o-y in line with CIMB Niaga’s improving performance.
Thailand’s PBT contribution of RM399 million was a 116.8% y-o-y increase, mainly from improvements in consumer and lower provisions, while total PBT contribution from Singapore was 23.7% higher y-o-y at RM438 million, mainly from savings on the deconsolidation of CSI core processing solution.
The group declared a second interim net dividend of 12 sen per share to be paid via cash or an optional dividend reinvestment scheme.
For FY18, the total dividend amounted to 25 sen or RM2.37 billion, translating to a dividend payout ratio of 50.8% of FY18 business-as-usual profits.
Tengku Zafrul said the group remained 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 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 strategic plan will place us on a sustainable growth path, with focus on advancing the interests of not only our customers but also society,” he said.