The group expects its net interest margin to normalise and see some pressure in Q4.

CIMB Group Holdings reported a profit attributable to owners of the parent of $1.33b (RMB5.93b) in the first nine months of 2024, a 12.57% increase compared to the same period last year.

The Malaysian banking group earned $456.75m (MYR2.03b) for the third quarter, 9.88% year-on-year (YoY) higher than in Q3 2023, the group’s latest financial results showed.

Basic earnings per share for the Q3 period is MYR18.98 (approximately $4.27), bringing the total basic EPS to MYR55.49 (approximately $12.49) for 9M 2024. Diluted EMS is MYR55.24, or MY18.88 for Q3.

Profit before tax is $1.81b (MYR8.03b) for the first nine months of 2024, an 11.4% YoY expansion compared to the previous year.

Operating income grew 8.5% YoY to $3.82b (MYR16.97b) over the same period. Net interest income rose by 6% YoY on the back of asset growth.

Non-interest income was 14.4% YoY higher to $1.21b (MYR5.39b), which the Malaysian bank attributed to stronger fees, treasury client sales, and trading income.

Banking book net interest margin (NIM) expanded to 2.75% in Q3 2024, from 2.59% in Q4 2023, due to price discipline and deposit-led strategies.

However, CIMB Group expects NIM to normalize and see some pressure in Q3 2024.

Total gross loans grew 4.3% YoY, with CIMB reporting strong demand across markets.

Asset quality improved, with its gross impaired loans (GIL) ratio improving from 3.2% in

September 2023 to 2.3% in September 2024. Allowance coverage progressed from 95% to 102.6% over the same period.