CIMB Upgrades GDP Forecast To 5.2 Pct, Expects Ringgit To Strengthen To 4.22 Level In 2024

KUALA LUMPUR, Aug 30 (Bernama) — CIMB Group Holdings Bhd has upgraded its 2024 gross domestic product (GDP) growth forecast to 5.2 per cent after the country reported a strong second quarter of 2024 (2Q 2024) GDP growth of 5.9 per cent. 

Group chief financial officer Khairul Rifaie said CIMB also expects the ringgit to further strengthen to the 4.22 level versus the US dollar in 2024. 

“In terms of our house view of GDP, because of the very strong 2Q growth that we recorded so far, we usually upgrade in terms of our forecast for 2024. We are looking at about 5.2 per cent GDP growth for 2024.

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“For the ringgit, we are looking at further strengthening to 4.22 level in 2024,” he told reporters in a media briefing for the group's 2Q 2024 financial results here today. 

On Aug 16, Bank Negara Malaysia (BNM) said Malaysia’s economy saw a robust expansion of 5.9 per cent in 2Q 2024 exceeding earlier prediction of 5.8 per cent, bolstered by resilient household spending, vigorous investment activities and a significant increase in tourism arrivals. 

BNM governor Datuk Seri Abdul Rasheed Ghaffour said the 5.9 per cent GDP growth in 2Q 2024 is the highest since the fourth quarter in 2022. 

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At Friday’s (Aug 30) closing, the local currency was slightly lower to 4.3185/3225 versus the greenback from Thursday’s close of 4.3080/3140.

In a filing with Bursa Malaysia today, CIMB's net profit rose by 10.6 per cent to RM1.96 billion in the second quarter ended June 30, 2024 (2Q FY2024) compared to RM1.77 billion a year ago. 

Revenue increased by 5.0 per cent to RM5.60 billion for the quarter under review from RM5.33 billion previously, underpinned by stronger net interest income and non-interest income from trading and non-performing loan sale gains.

— BERNAMA