13 April 2023
The Group looks to expand its sustainable finance solutions guided by its GSSIPS framework, whilst continue making positive impacts across its ASEAN footprint
Kuala Lumpur: CIMB Group Holdings Berhad (“CIMB Group” or “the Group”) held its 66th Annual General Meeting (“AGM”) with shareholders today, where all 10 ordinary resolutions tabled at the AGM were successfully passed, and the audited financial statements for the financial year ended 31 December 2022 (“FY22”) were duly received. The meeting was chaired by Datuk Mohd Nasir Ahmad, Chairman of CIMB Group, with the Board of Directors and Dato’ Abdul Rahman Ahmad, Group CEO of CIMB Group in attendance.
As announced previously, CIMB Group saw continued positive momentum in FY22, supported by strong underlying performance across all business segments as well as its key markets of Malaysia, Indonesia, Singapore and Thailand. The encouraging year-on-year (“YoY”) performance was contributed by robust growth in operating income driven by NIM expansion and above market loan growth, stringent cost management and lower provisions. Accordingly, the Group met or exceeded all financial profitability targets for FY22, including annualised return on average equity (“ROE”), cost-to-income ratio (“CIR”) and credit cost/provisions. These included achieving the lowest recorded CIR of 46.5% in FY22 from 48.6% in FY21.
Additionally, CIMB Group remains well-capitalised sustaining its common equity tier 1 (“CET1”) ratio of 14.5% as at Dec-22, demonstrating the Group’s continued capital strength and resilience. The Group declared a total annual dividend of 26.00 sen per share or RM2.75 billion for FY22, which translates to a payout ratio of 50.5% based on the reported core net profit, in line with the Group’s dividend policy.
Speaking at the AGM, Datuk Nasir said, “On behalf of the Board, I would like to extend my profound appreciation to all our stakeholders for their continued trust and association with us over another year of recovery and progression. 2022 was the year where economies largely rebounded post COVID-19 but was also affected by rising inflation caused by supply disruptions and geopolitical tensions leading to sharp rise in interest rates. Amidst this economic backdrop, we remained focused on our purpose of advancing customers and society. We continued to recalibrate our strategies with a commitment to increase shareholder value and ensure our customers continue to have seamless access to finance and financing solutions and keeping them resilient on their road to recovery."
“As a purpose-driven financial intermediary, sustainability continues to be a key priority for CIMB. During the year, we doubled our sustainable finance target from RM30 billion to RM60 billion by 2024 under our Green, Social, Sustainable Impact Products & Services (“GSSIPS”) framework, after achieving the initial target two years ahead of schedule. In addition, we invested RM34.4 million into communities across ASEAN through various programmes, as part of our commitment to invest RM150 million into community initiatives over five years. The Board will continue to provide oversight and guidance to ensure the Group achieves its Forward23+ strategic plan to deliver sustainable financial returns whilst creating shared value for all our stakeholders,” Datuk Nasir added.
Together with financial targets, CIMB has accelerated its environmental, social and governance (“ESG”) agenda across the business and made measureable progress towards achieving its ambition of becoming an ASEAN sustainability leader by 2024. As a testament to this, the Group achieved the 80th percentile on the S&P Global Corporate Sustainability Assessment (“CSA”) in line with its Forward23+ target to achieve the top quartile by 2024.
Dato’ Abdul Rahman said, “When we first formulated our Forward23+ Strategic Plan in 2020, it was predicated on creating sustainable shareholder value through meaningful improvements to the Group’s annualised ROE. As we move past the midpoint and with two years to go, our strategy is making positive headway with strong momentum towards delivering our Forward23+ ambition of becoming the leading focused ASEAN bank by 2024. In 2023, the Group will focus on growing targeted segments, especially our affluent and wealth management business with particular focus on growing our deposits and CASA franchise, transaction banking and regional ASEAN network business."
“Alongside this, we are pleased to have made great headway in security improvements and technology resiliency. We have invested RM2.7 billion in the last three years, with another RM1 billion committed this year, to further enhance our digital platforms. This included the launch of our new mobile banking app CIMB OCTO, in Malaysia together with refreshed apps for our Singapore and Indonesia markets.
We are further committed and on schedule to implement all the security initiatives mandated by Bank Negara Malaysia to strengthen safeguards against financial scams which most recently included the “kill switch” feature in our mobile banking apps. This enables customers to immediately freeze their own online banking ID if they detect any unusual or suspicious activity with their accounts. We also have further tightened fraud detection rules and triggers for blocking suspected scam transactions,” Dato’ Abdul Rahman added.
CIMB plays a critical role in driving positive impacts amongst all its stakeholders, such as customers, vulnerable segments and the community. The Group remains committed to supporting the revitalisation of businesses and livelihoods. Recently, CIMB reactivated its financial obligation payment relief under the CIMB Flood Relief Assistance Plan to individual and business customers to help them navigate through the adverse impact of the recent floods. Additionally, in 2022 the Group had also committed RM30 billion in financing to accelerate the revitalisation and continued growth of small and medium enterprises (“SMEs”) by 2024.
The Group’s key headline targets for 2023 include ROE of between 10.2-11.0%, total loan growth of 5.0-6.0%, CIR of below 46.5% and maintaining its CET1 ratio above 13.0%.