CIMB Group Holdings Bhd recorded a 21.9 per cent increase in pre-tax profit to RM4.647 billion for the year ended Dec 31, 2010, compared with RM3.811 billion registered a year ago.

Revenue rose 12.7 per cent to RM11.811 billion compared with RM10.48 billion. Net profit rose 25.4 per cent to touch a record RM3.521 billion.

Pre-tax profit for the fourth quarter rose to RM1.148 billion versus RM1.093 billion in the same quarter the previous year while Q4 revenue was higher at RM3.158 billion against RM2.731 billion in the corresponding period. Total dividend payout amounted to 26.08 sen.

Group Chief Executive Datuk Seri Nazir Razak said in a statement today the banking group had a very good year with shareholders receiving record dividend payment.

'This is a perfect way to mark the final year of our 5-year transformation from a Malaysian investment bank to an Asean universal bank, underpinned by the turnaround in our Malaysian consumer bank, benefits from cross-divisional synergies and surge in contribution from CIMB Niaga,' he said.

Corporate and Investment Banking's pre-tax profit jumped 71.2 per cent, year-on-year, to RM1.149 billion in tandem with the more robust regional capital markets and several major transactions over the past 12 months.

CIMB Niaga's contribution surged 99.7 per cent, year-on-year, to RM1.572 billion from RM787 million previously due to operational improvements and favourable operating conditions.

CIMB Niaga was the largest contributor to PBT for 2010 at 34 per cent versus 21 per cent in the previous corresponding period.
The bank's risk weighted capital ratio stood at 15.4 per cent while its Core Tier 1 capital ratio was 14.5 per cent as at Dec 31 2010, before the proposed second interim dividend.

Nazir Razak said CIMB Islamic's year-on-year pre-tax profit jumped 136.8 per cent to RM404 million as Shariah-compliant banking products continued to gain ground.

Looking ahead, he said the group targeted a higher return on earnings of 17 per cent for 2011.

'We will look to new areas for strong growth, such as regional transaction banking, CIMB Singapore and CIMB Thai,' he said.
CIMB Group has set targets of total region-wide loan and deposits growth of 18 per cent and 20 per cent, respectively. -- Bernama