CIMB posts $293.5m net profit for FY2020

Higher loan provisions affected the bank's performance.

CIMB has registered a $293.5m (MYR1.19b) net profit for FY2020, affected by higher loan provisions and specific provisions versus COVID-19 and legacy accounts, according to a statement.

For Q4, the group reported a sequential operating income growth of 5.6% QoQ to $1.16b (MYR4.72b), underpinned by a 3.8% increase in net interest income (NII) and 10.3% non-interest income (NOII) growth.

NII grew marginally to $3.14b (MYR12.73b) YoY despite a 14 bps decrease in net interest margin (NIM) to 2.32% due to the impact of lower interest rates and modification loss.

As for NOII, stronger treasury and markets, wealth management, and investment banking activity in the second half of the year partially offset weakness in the first half, resulting in NOII of $1.1b (MYR4.46b).

Topline resilience, cost discipline and proactive measures to protect asset quality allowed the group to strengthen its financial position, leading to its highest CET1 ratio of 13.3%. Current account savings account (CASA) also grew 22.6% in FY20, bringing the CASA ratio to 41.3% as of December 2020.