The Group targets an absolute cost reduction of around RM500 million or 5% for FY20 through rigorous cost optimisation measures to mitigate the challenging economic environment.
– 1H20 PBT of RM910 million and Net Profit of RM785 million with lower annualised ROE of 2.8% due to elevated loan provisions and impact of COVID-19
– Underlying business remains resilient – total gross loans and deposits increased by 3.9% and 7.8% respectively, with continued improvement in CASA ratio to 38.4%
– Operating income declined by 7.3% due to a drop in markets-related NOII, while NII remained healthy with 1.4% growth, or 6% excluding modification loss impact
– Operating expenses lower by 3.3% YoY as CIMB targets a full year cost reduction of around RM500 million to mitigate the impact of the challenging economic environment
– Capital position remains strong with a higher CET1 ratio of 12.9%1, while the liquidity coverage ratio remains comfortably above 100%
KUALA LUMPUR, Aug 28 (Bernama) — CIMB Group Holdings Berhad (“CIMB Group” or the “Group”) announced a profit before tax (“PBT”) of RM910 million and net profit of RM785 million for the first half period ended 30 June 2020 (“1H20”), down from RM3.56 billion and RM2.70 billion recorded respectively in the corresponding period last year. This translates to a lower annualised return on average equity (“ROE”) of 2.8% and net earnings per share (“EPS”) of 7.9 sen. The Group’s performance was affected by the challenging economic environment caused by the COVID-19 pandemic, which led to modification loss arising from the moratorium given to borrowers, as well as elevated provisions due to macro-economic factors (“MEF”) and specific credit provisioning.