Qualampur: CIMB Group Holdings BHD is targeting 5–7% debt hike in 2025, marking a strong speed compared to the previous year.
The debt growth of the banking group will be largely fuel by Indonesia, where development is estimated within the same 5-7% range. Malaysia is also expected to gain momentum, in which debt hike is approximate 5-6%.
Additionally, signs of acceleration are visible in the operation of the CIMB group Thailand and Singapore, supporting the positive attitude of the group for 2025.
Group CEO Novan Amiruddin said that increasing operations in Thailand remains an important focus for the group, saying that a sharp approach for client segmentation is essential for better service to the right banking customers.
“Despite the challenges, the group is fully committed to Thailand, as it plays an important role in completing its ASEAN network, especially in wholesale banking. With significant investment in Malaysia, Singapore and Indonesia, many Thai corporates are actively expanding in Southeast Asia, and the group continues to support them in these markets.
“Thailand is more than just one local market. It is a strategic part of the regional appearance of the group. However, improving operational efficiency is a priority to achieve better results in the country, ”he told reporters in briefing of FY24 financial results of CIMB group on Friday.
Novn said that Thailand’s economic growth is sluggish, the GDP expands only 1-2%, both last year and current forecasts. He said that many factors contribute to this slow pace.
“One major issue is the lack of a major investment cycle in recent years. Earlier, Thailand saw significant investment in automotive and petrochemical regions, but these industries now face growing challenges.
For example, the US tariff on Chinese EVS has forced additional supply to Southeast Asia, which indirectly affects Thailand’s auto region. Meanwhile, an important driver tourism of the Thai economy has shown signs of recovery. However, the visitor number is not yet back to pre-political high.
“Given these factors, Thailand remains a difficult market, facing structural headwinds that continue to weigh at their economic approach,” he said.
The CIMB Group achieved a strong financial performance with a net profit of RM7.73 billion for 10.7% for the financial year ending 31 December, 2024 (FY24) compared to RM6.98 billion in FY23. Benefits before tax increased by 9% yoy to RM10.4 billion, translation of income per share of 72.3 Sen.
The results made significant improvements on average equity in exchange for 11.2%, 50bps yoy.
In addition, the CIMB group’s FY24 operating income increased by 6.1% yoy to RM22.3 billion, which contributed to an increase in net interest income (NII) and non-onion income (NOII).
NII, run by healthy debt growth, ranged from 5.3% yoy to RM15.40 billion, while NOII increased by strong customer franchise business and trading income by 8.1% yoy up to 8.1% yoy, up to 31.0% in NOII ratio, up to 60bps yoy.
The CIMB Group proposed a second interim dividend of 20 Sen per share, in which the total annual dividend was brought to 47 Sen per share. It translates to a record total dividend payment of RM5.04 billion.
The total gross loans of the CIMB group saw a solid 4.8% yoy development, aligning with market trends.
As part of its deposited strategy, the total deposit 5.2% yoy increased, while the remaining account of the current account savings account (CASA) increased by 7.7% yoy, leading to 43.1% by December 2024.
“Moving ahead in 2025, the CIMB group will be cautious in our approach and will be alert to navigate external and geopolitical uncertainty.
“While the challenges persist, we expect flexibility in our ASEAN markets, where we operate and continue our main financial performance on a positive trajectory, proceed to continue with priority without profit, without compromising on investment and flexibility,” Novn said.
