KUALA LUMPUR, Aug 30 — CIMB Group Holdings Bhd registered a better net profit of RM1.77 billion in the second quarter (2Q) ended June 30, 2023, from RM1.28 billion a year earlier on the back of strong non-interest income (NOII) improvement.

Revenue went up to RM5.33 billion from RM4.88 billion previously, it said in a filing with Bursa Malaysia today.

The bank said operating income was 9.2 per cent higher at RM5.33 billion thanks to a strong NOII and relatively muted net interest income (NII).

On the commercial banking segment, CIMB said its profit before tax (PBT) jumped 34.4 per cent year-on-year (y-o-y) to RM426 million driven by improved operating income and lower provisions from overlay writebacks.

In contrast, consumer banking PBT fell 6.5 per cent from lower NOII, partially offset by improved NII, and higher operating expenses (opex); while wholesale banking PBT slipped 2.6 per cent as provisions were higher from the absence of writebacks of derivatives exposures.

Meanwhile, in a press statement, CIMB said total gross loans and deposit growth continued to be on an upward trajectory in the first half of the year (1H FY2023), recording 8.3 per cent and 9.5 per cent y-o-y increases respectively, across key markets and business segments.

Meanwhile, total current account and savings account (CASA) contracted marginally y-o-y but improved 5.7 per cent on a quarterly basis driven by regional initiatives that are starting to bear fruit.

"This led to a sustained CASA ratio of 38.5 per cent as at the end of June 2023,” it said.

Group chief executive officer Datuk Abdul Rahman Ahmad said the bank is pleased to increase the interim dividend to 17.5 sen per share, representing a payout ratio of 55 per cent—an increase from 50 per cent in 1H FY2022 — amid the group’s strong capital, funding and liquidity positions.

Its diversified Asean portfolio also showed positive results, with growth driven from the reshaped Indonesia and Singapore operations cushioning the group from downside risks in weaker markets, he said.

"We are particularly pleased with CIMB Niaga’s transformation, which achieved a record-high return on equity of 15.4 per cent for 1H FY2023,” he said, referring to the group’s banking franchise in Indonesia.

Abdul Rahman said CIMB is taking a cautious position for the remainder of the year as global economic headwinds continue to persist.

"However, we anticipate the Asean markets, where the group operates, to remain resilient, supported by the regional countries’ economic policies and strong demand for tourism and services.

"Accordingly, we are optimistic to continue the momentum of positive financial performance where we are currently on track to meet our FY2023 targets across all profitability metrics,” he said. — Bernama