CIMB’s strong financial performance attributed to positive impact from the successful execution of the Forward23+ strategic plan

29 April 2024

Kuala Lumpur: CIMB Group Holdings Berhad (“CIMB Group” or “the Group”) held its 67th Annual General Meeting (“AGM”) virtually 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 2023 (“FY23”) 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 FY23, driven by strong underlying performance across all business segments and geographies. The positive year-on-year (“YoY”) performance was underpinned by robust operating income growth with solid loan and CASA growth, coupled with lower provisions from prudent risk management and recoveries. Accordingly, the Group met most of its financial targets for FY23, including annualised return on average equity (“ROE”) and credit cost/provisions. 

CIMB Group remains well-capitalised as its Common Equity Tier 1 (“CET1”) ratio remained strong at 14.5% as at Dec-23. The Group declared a total annual dividend of 36.00 sen per share for a payout ratio of 55.0%, in line with the Group’s dividend policy. In addition, the Group also awarded a special dividend payout of RM747 million or 7.00 sen per share, which in turn translated to a record total dividend payout of RM4.59 billion for FY23, providing shareholders with higher returns.

Speaking at the AGM, Datuk Nasir said, “On behalf of the Board, I would like to extend my sincere gratitude and appreciation to all our stakeholders for their unwavering trust and valued partnership over the past year. While 2023 presented varied challenges in the banking industry, for CIMB, it marked an exciting phase as our Forward23+ strategic plan continued to gain strong momentum. We are pleased to report that despite external uncertainties, we met our Forward23+ targets, reaffirming our commitment to becoming the leading focused ASEAN bank. Our continued focus on organisational excellence remains steadfast as we continue to forge ahead with confidence and commitment.”

“As a purpose-driven organisation, sustainability remains a top priority as it serves as an integral part of our strategic plan. We have consistently stayed on target or outperformed our YoY sustainability aspirations. For the second consecutive year, we are proud to have achieved top quartile within the global banking industry in the S&P Global Corporate Sustainability Assessment (“CSA”), achieving our Forward23+ targets two years ahead of plan further. Among 400 international financial institutions, CIMB ranked seventh worldwide in the 2023 Financial System Benchmark. These recognitions reinforce our ongoing sustainability agenda and leadership, as we strive for sustainable growth to unlock new possibilities and opportunities into the future,” concluded Datuk Nasir.  

Over the last three years, CIMB Group has achieved cumulatively RM86.2 billion of sustainable finance under the Group’s Green, Social, Sustainable Impact Products and Services (“GSSIPS”) Framework, inching closer to the Group’s revised sustainable finance target of RM100 billion by 2024, which tripled from the initial target of RM30 billion that was announced in 2021. 

Dato’ Abdul Rahman said, “We made significant progress under our Forward23+ strategic plan and are on track to deliver the targets across most profitability metrics set under the plan four years ago. As we enter the final year of Forward23+, our focus is to enhance CASA and deposit franchise with an emphasis on effective balance sheet management to improve net interest margin regionally. Further we intend to maintain NOII growth through wealth management and affluent segment, as well as to continue our cost discipline and improve asset quality to deliver on our ambitious 2024 targets.”

“In an increasingly digitised landscape, we recognise the imperative of leveraging technology particularly in advanced digital platforms and data analytics to drive customer acquisition and elevate customer experience. Our strategic roadmap for 2024 identifies a strong emphasis on strengthening operational resiliency, ensuring robust infrastructure, and implementing comprehensive contingency plans to mitigate potential disruptions. By aligning technology investments with operational resiliency enhancements, we aspire to reinforce our competitive edge, adapt to evolving market dynamics, and position ourselves for sustainable growth in 2024 and beyond,” Dato’ Abdul Rahman elaborated. 

As a responsible financial intermediary, CIMB has always played a catalytic role in creating long-term positive impacts on the communities it operates in, including its valued customers and the underserved groups. The Group remains committed to advancing customers and society, increase shareholder value and ensure customers across ASEAN continue to have access to financial solutions.