Kuala Lumpur, March 1 - CIMB Group Holdings Bhd yesterday reported a Profit Before Tax (“PBT”) of RM4.88 billion for financial year 2016 (“FY16”). On a year-on-year (“Y-o-Y”) basis, the Group’s FY16 operating income expanded 4.4% with operating expenses remaining well under control.
This translated to an 8.6% Y-o-Y improvement in preprovisioning operating profit (”PPOP”) and a 4.5% Y-o-Y improvement in the Net Profit to RM3.56 billion compared to the Business As Usual (“BAU”) FY15 Net Profit of RM3.41 billion. The FY16 net earnings per share (“EPS”) stood at 41.00 sen with a net return on average equity (“ROE”) of 8.3%.
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 FY16, the total dividend amounted to 20.00 sen or RM1.76 billion, translating to a dividend payout ratio of 49.5% of FY16 profits.
“We are pleased to report our highest ever revenue of RM16.07 billion and a 4.5% Y-o-Y increase in net profit to RM3.56 billion, amidst a trying business environment in 2016. Across the Group, our overhead expenses increased by only 1% Y-o-Y, contributing to the encouraging Cost-to-Income ratio,” said Tengku Dat’uk Seri Zafrul Aziz, Group Chief Executive, CIMB Group.
“The Group’s balance sheet continued to strengthen with a commendable 8.7% Y-o-Y growth in loans, with positive CASA momentum, particularly in CIMB Niaga. Our capital management efforts have strengthened our CET1 to 11.3% from 10.3% in 2015. We have declared a 12.00 sen second interim dividend, resulting in a 49.5% payout ratio for FY16.”
According to Tengku Zafrul, its best performing segment was Consumer, which contributed 46% of PBT, with Thailand posting its first annual profit since acquisition. For Commercial Banking, both Malaysia and Indonesia performed well, although this was tempered by higher provisions in Singapore and Thailand. Wholesale Banking recorded a commendable 11.3% growth in PBT, with strict cost controls and declining provisions.
“The disciplined recalibration of our business under T18 has strengthened the Group’s foundation to help us negotiate the unexpected challenges of 2016. This is reflected in our key financials and we remain on track to achieve most of our T18 targets by 2018,” continued Tengku Zafrul.
CIMB Islamic’s FY16 Y-o-Y PBT increased by 33.8% to RM724 million from improved performance in the Consumer segment. CIMB Islamic’s gross financing assets increased by 16.7% Y-o-Y to RM47.4 billion, accounting for 14.6% of total Group loans. Total deposits increased by 19.5% Y-o-Y to RM52.8 billion.