CIMB Group Holdings Bhd reported a Profit Before Tax (PBT) of RM6.11 billion for financial year 2017.
On a year-on-year (Y-o-Y) basis, the Group’s FY17 operating income expanded 9.7%, translating to a 14.6% Y-o-Y improvement in Pre-Provision Operating Profit (PPOP) and a 25.6% Y-o-Y growth in Net Profit to RM4.48 billion. The FY17 net Earnings Per Share (EPS) stood at 49.6 sen with a net Return On Average Equity (“ROE”) of 9.6%.
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 FY17, the total dividend amounted to 25.00 sen or RM2.28 billion, translating to a dividend payout ratio of 51.0% of FY17 profits.
“We are pleased to have met our key financial targets for 2017 and to report our highest ever PBT of RM6.11 billion, an increase of 25.1% Y-o-Y, on the back of record operating income of RM17.63 billion, continued cost discipline and lower provisions. Both Wholesale and Consumer Banking had a good year, posting PBT growth of 53.0% and 11.8% respectively. Our Commercial Banking performance was tempered by higher-than-expected provisions in Singapore and Thailand, although Malaysia performed well. CIMB Niaga’s PBT increased by 45.7% and CIMB Thai returned to profitability,” said Tengku Datuk Seri Zafrul Aziz, Group CEO, CIMB Group.
“Our Cost-to-Income ratio came in at 51.8%, while our CET1 strengthened to 12.2% following sustained capital management efforts. We have declared a 12.00 sen second interim dividend, representing a 51.0% payout ratio for FY17,” continued Tengku Zafrul.
CIMB Group’s FY17 operating income grew 9.7% Y-o-Y to RM17.63 billion largely driven by a 12.8% growth in non-interest income, in line with better capital market activity and improved fee income and an 8.4% growth in net interest income. Operating expenses rose 5.6% Y-o-Y but was only 3.4% higher after excluding foreign currency translation effects as the Group sustained its cost management efforts. The positive JAW brought about the 14.6% improvement in the Group’s PPOP. The Group’s PBT was 25.1% higher at RM6.11 billion, with loan provisions declining 7.4% Y-o-Y.
“We are optimistic about 2018 and confident of achieving our T18 targets, on the back of continued momentum in Malaysia and the expectation of further improvement in loan growth and asset quality across Indonesia, Thailand and Singapore. This year will also see us complete our presence in all 10 ASEAN countries with our first branch opening in the Philippines by end-2018. We are also excited to launch our digital banking proposition in Vietnam in 1H18. We strongly believe that these, coupled with our strengthened foundation, strategic partnerships and extensive ASEAN network will help us deliver real value to all our stakeholders and further entrench CIMB’s position as a leading ASEAN universal bank,” continued Tengku Zafrul.