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KUALA LUMPUR: CIMB Group Holdings Berhad (“CIMB Group” or “the Group”) today announced robust growth for the first quarter ended 31 March 2024 (“1Q24”), with profit before tax (“PBT”) rising 15.1% YoY to RM2.57 billion. Net profit also saw a significant increase of 17.7% YoY to RM1.94 billion, driven by strong operating income and managed costs and provisions. This resulted in an annualised return on equity (“ROE”) of 11.4%, up from 10.3% in 1Q23, and earnings per share (“EPS”) of 18.2 sen. Operating income for 1Q24 grew by 12.6% YoY to RM5.63 billion, with net interest income (“NII”) up 7.7% YoY to RM3.79 billion due to strong loan growth and net interest margin (NIM) recovery. Non-interest income (“NOII”) increased by 24.5% YoY to RM1.84 billion, driven by capital markets, investment-related income, and gains from the sale of non-performing loans. Total gross loans increased by 7.0% YoY, particularly in Singapore, which saw a 13.1% YoY rise. Deposits grew by 8.2% YoY, propelled by a 16.8% increase in CASA deposits, improving the CASA ratio to 40.8% in March 2024 from 37.9% in March 2023. The Group’s cost-to-income ratio improved to 45.3%, benefiting from the strong operating income growth which offset an 8.9% YoY rise in operating expenses due to inflationary pressures and technology investments. Provisions were contained at RM503 million, with a credit cost of 35 basis points (bps) compared to 37 bps in 1Q23. On a quarter-on-quarter (QoQ) basis, PBT and net profit improved by 10.4% and 12.9% respectively, driven by a 4.7% increase in operating income and a 2.8% reduction in operating costs, though partially offset by a 26.1% increase in provisions due to the absence of overlay writebacks from the previous quarter. CIMB Group’s capital position remained strong, with a CET1 ratio of 15.0% as at end-March 2024, up from 14.3% a year earlier and 14.5% at the end of December 2023.Dato’ Abdul Rahman Ahmad, Group Chief Executive Officer of CIMB Group, stated, “Our strong performance in the first quarter reflects a positive start to the financial year amidst challenging global conditions. Our revenue growth, coupled with managed costs and provisions, underscores the effectiveness of our ASEAN diversification strategy.” Consumer Banking: Operating income grew 9.6% YoY with NII up 9.4% and NOII up 9.9%. PBT fell 10.3% due to higher expenses and provisions. Commercial Banking: Operating income increased by 1.7% YoY, with a 3.3% NII growth. PBT rose 9.1% YoY due to lower provisions. Wholesale Banking: Operating income grew 15.0% YoY, driven by a 43.3% increase in NOII. PBT expanded by 40.2% YoY. Digital Assets & Group Funding: Operating income rose 42.4% YoY, with PBT up 25.5% YoY, supported by strong growth in CIMB’s digital businesses. CIMB Islamic:*Operating income increased 15.1% YoY, with PBT up 46.8% YoY due to a recovery in Islamic finance. Dato’ Abdul Rahman expressed cautious optimism for the year, noting the challenges posed by global economic headwinds but highlighting the Group’s resilience and strong performance in key markets. He emphasized CIMB’s commitment to its Forward23+ strategic plan and ESG goals, aiming to achieve a cumulative RM100 billion in sustainable finance by FY24. The Group is poised to continue its focus on strengthening its deposit and CASA franchise, managing NIM, expanding NOII, and enhancing technology and operational resilience to drive sustained growth and deliver on its FY24 targets.

KUALA LUMPUR: The investment is expected to support 26,500 jobs across various sectors and generate an economic impact of approximately RM15.04 billion, according to the Ministry of Investment, Trade, and Industry (MITI). This project, Google’s largest planned investment in Malaysia, will be situated in Sime Darby Property’s Elmina Business Park in Greater Kuala Lumpur. MITI states that the Google data centre will support popular digital services such as Search, Maps, and Workspace. It will also be instrumental in enabling Google to deliver the benefits of AI to users throughout the country. “This investment is not just about infrastructure; it’s about unlocking new possibilities for businesses, educators, and every Malaysian,” said Farhan S Qureshi, country director for Google Malaysia, in a blog post on Thursday. Qureshi highlighted that the Google data centre would support services like Google Search and Google Maps, and “pave the way for delivering the transformative power of AI to users and customers across the country.” Additionally, he noted that the Google Cloud region would provide high-performance, low-latency cloud services to enterprises, startups, and public sector organisations, along with key controls to ensure the highest security and compliance standards. MITI asserts that Google’s commitment is a significant step toward the government’s goal of attracting more digital investors to build a robust and secure digital economy. “The investment in Google’s first data centre in Malaysia and the development of the Google Cloud region demonstrates that the government’s clear planning, combined with the country’s economic strength and resources, is appealing to both existing and new investors,” said Prime Minister Datuk Seri Anwar Ibrahim in a post on X. “This undoubtedly positions Malaysia as one of the leading countries in the use and support of digital technology-based services,” he added.

KUALA LUMPUR: Leading innovator in electrical solutions Powerwell Holdings Bhd (PHB) has secured purchase orders totalling RM57.61 million from a renowned multinational technology corporation. The purchase orders, dated May 24, 2024, encompass the supply, installation, and commissioning of low-voltage switchboards and remote power panels for a high-profile data centre project in Selangor. This initiative is set to significantly contribute to PHB’s consolidated earnings and net assets for the financial year ending March 31, 2025 (FY25). This monumental deal, secured by its wholly-owned subsidiary, Powerwell International Sdn Bhd (PISB), underscores PHB’s pivotal role in the rising data centre sector in Malaysia and Southeast Asia. PHB executive director Catherine Wong said this agreement reflects the trust and reliability that major tech players place in the company and positions it at the forefront of Asia’s fast-expanding data centre market. “We are committed to delivering excellence and innovation, ensuring the successful execution of this project within the stipulated timeline,” she said in a statement today. The data centre market in Malaysia is experiencing exponential growth, driven by escalating demands for cloud services and digital transformation across Asia. The country’s strategic location, robust infrastructure, and government support make it an increasingly attractive destination for data centre investments. Recent developments in the region, including substantial investments by global tech giants, reinforce Malaysia’s potential to transform into a leading data centre hub in Asia. The country received RM76 billion (US$16 billion) worth of investments from its data centres between 2021 and March 2023, and its data centre market is expected to attract investments of US$2.25 billion by 2028. Some of the recent developments include the announcement by NVIDIA Corporation at the end of last year to collaborate with a local entity to develop a US$4.3 billion artificial intelligence (AI) cloud and supercomputer infrastructure. Microsoft has recently committed to a US$2.2 billion investment over the next four years, the largest in its 32-year history in Malaysia, focusing on establishing a robust cloud and AI infrastructure to support Malaysia’s digital ecosystem. “These investments by global tech giants enhance the technological landscape in which PHB operates and create a ripple effect of opportunities for local suppliers and service providers in the tech sector. “As Malaysia strides towards becoming an advanced digital economy, PHB is strategically positioned to contribute significantly to this growth, leveraging cutting-edge technology and comprehensive expertise in electrical solutions for data centres,” Wong added.