KUALA LUMPUR: CIMB Group Holdings Bhd is maintaining its full-year FY2025 guidance of 5–7% overall asset growth, including loans and bonds, despite a softer performance in the first half of the year (H1’25).
Group CEO Novan Amirudin said corporate activity was subdued earlier due to tariff uncertainties, but sentiment has started to improve after recent announcements from the United States provided clarity.
“Our wholesale growth will be driven by corporates’ capex and bond issuance plans. From our client discussions, we observe a gradual return of confidence as market clarity improves following the tariff announcements.
“While it is still early days, we believe this will encourage corporates to proceed with investments and repayment decisions,” he told reporters at the group’s H1’25 results briefing today.
CIMB Group expects asset and loan growth of 5–7% for FY25, compared with 6.1% achieved in the first half.
The group’s proactive asset-liability management strategy has helped preserve net interest margin (NIM) stability, supported by strong asset quality and a healthy loan-to-deposit ratio of 88%.
“Our well-capitalised balance sheet not only ensures resilience but also gives us the flexibility to pursue future growth and strategic priorities. This enables us to sustain returns, support capital distribution, and reinforce our commitment to long-term shareholder value,” Novan said.
For FY25, CIMB Group is targeting a return on equity of 11%–11.5%, broadly in line with the 11.1% achieved in H1’25.
The cost-to-income ratio is expected to remain at 46–47%, while loan loss charges are projected to be 25–35 basis points, following 29 bps in the first half.
The group also highlighted its CET1 ratio of 14.7% and contractual CET1 of 214%, reflecting solid capital buffers to support growth and shareholder returns.
For the second quarter ended June 30, 2025, CIMB Group posted a net profit of RM1.89 billion, down from RM1.96 billion a year earlier, as weaker net interest income (NII) offset stronger non-interest income (NOII).
Revenue was flat at RM5.6 billion.
Net earnings declined 3.8% year-on-year in Q2, primarily due to regional rate cuts in Indonesia, Thailand, and Singapore, which pressured NII. However, this was partly mitigated by a 5.3% quarter-on-quarter rise in NOII, supported by trading gains.
For the first half, net profit came in at RM3.86 billion versus RM3.90 billion in the same period last year.
The decline was mainly due to foreign exchange translation and softer NII from regional rate cuts, though this was cushioned by higher trading and fee income.
Revenue for H1’25 stood at RM11.1 billion, compared with RM11.23 billion previously.
CIMB Group declared a first interim dividend of 19.75 sen per share, amounting to about RM2.1 billion, or 55.5% of net profit.
Looking ahead, CIMB Group will launch its business banking app, OCTOBiz, in Malaysia and Indonesia in Q4’25, with further rollouts planned across other markets.
“These initiatives underscore our commitment to delivering sustainable returns and to strengthening our position as the leading focused Asean bank,” Novan said.