Thanks to a solid operating income performance and maintained costs.

CIMB Group’s net profit climbed 17.7% year-on-year (YoY) to $0.41b, attributable to strong operating income growth and contained costs and provisions.

“The positive performance translates to an improvement in the Group’s annualised return on average equity (ROE) to 11.4%, as compared to 10.3% recorded in 1Q23” the bank said in a company filing.

The company also saw a profit before tax (PBT) of $0.54b for the quarter, marking a 15.1% YoY.

This led to an improved annualized return on average equity (ROE) of 11.4%, up from 10.3% in 1Q23.

Operating income for Q124 rose by 12.6% YoY to $1.18b, with both net interest income (NII) and non-interest income (NOII) contributing to this growth.

NII increased by 7.7% YoY to $0.80b due to robust loan growth and NIM recovery, whilst NOII surged by 24.5% YoY to $0.39b, bolstered by strong capital markets, investment-related income, and gains from the sale of non-performing loans.

Total gross loans grew by 7.0% YoY across key markets, with Singapore experiencing a 13.1% increase.

Deposits rose by 8.2% YoY, driven by a strong 16.8% growth in CASA, resulting in an improved CASA ratio of 40.8% in March this year compared to 37.9% in March last year.