KUALA LUMPUR, Feb 28 (Bernama) — CIMB Group Holdings Berhad (“CIMB Group” or the “Group”) reported a net profit of RM5.58 billion for financial year 2018 (“FY18”) on 28 February 2019. This raised the Group’s FY18 Return On average Equity (“ROE”) to 11.4%, and reduced its Cost-to-Income Ratio (“CIR”) to 49.8%, on a year-on-year (“Y-o-Y”) basis. The Group declared a second interim net dividend of 12.00 sen per share to be paid via cash or an optional Dividend Reinvestment Scheme (“DRS”). For FY18, the total dividend amounted to 25.00 sen or RM2.37 billion, translating to a dividend payout ratio of 50.8% of FY18 Business-As-Usual (“BAU”) profits.
“We are pleased to announce a record PBT of RM7.20 billion in FY18 despite the challenging operating landscape. The notable FY18 results were underpinned by strong performances from Consumer and Commercial banking, as well as lower provisions and costs. Our ROE is higher at 11.4% whilst CET1 strengthened to 12.6% and loan loss charge improved to 0.41%,” said Tengku Dato’ Sri Zafrul Aziz, Group Chief Executive, CIMB Group.
On a BAU basis, excluding the RM928 million gain from the sale of 20% of CIMB-Principal Asset Management (“CPAM”) and 10% of CIMB-Principal Islamic Asset Management (“CPIAM”), Profit Before Tax (“PBT”) was RM6.27 billion for FY18 representing a 2.7% year-on-year (“Y-o-Y”) growth. Lower Y-o-Y operating expenses of 5.2% and loan loss provisions of 35.8% contributed to the Group’s increase in FY18 BAU net profit by 4.0% Y-o-Y to RM4.66 billion. This was achieved despite a 6.6% Y-o-Y drop in operating income due to weaker capital markets in Malaysia and NIM compression in Indonesia. The FY18 net earnings per share (“EPS”) stood at 49.8 sen, while the annualized ROE was 9.6%.
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