KUALA LUMPUR, August 29, 2025 – CIMB Group Holdings Bhd reported a weaker second quarter, with net profit declining by 3.7 per cent to RM1.9 billion compared to RM1.96 billion in the same period last year. The dip was largely attributed to softer net interest income (NII), which offset stronger gains in non-interest income (NOII).
The group’s total operating income remained steady at around RM5.6 billion. While trading activities, particularly in Indonesia, contributed to higher NOII, the overall uplift was not sufficient to counteract pressures on NII. CIMB’s net interest margin (NIM) stood at 2.15 per cent, stable despite interest rate cuts in key regional markets such as Indonesia, Thailand and Singapore.
Non-interest income, however, provided some relief, rising by 5.3 per cent during the quarter, supported by a double-digit jump in trading income. The performance demonstrated CIMB’s growing reliance on diversified income streams beyond lending, though the structural margin compression in NII remained the dominant theme of the quarter.
For the first half of 2025, CIMB posted a net profit of RM3.86 billion, slightly lower than the RM3.9 billion achieved a year earlier. Revenue for the half-year rose 1.16 per cent to RM11.1 billion, reflecting a balance of NII and NOII contributions.
In terms of shareholder returns, CIMB declared a first interim dividend of 19.75 sen per share, representing a payout ratio of 55.5 per cent, consistent with previous guidance. The total dividend payout amounts to RM2.1 billion, with payment scheduled for September 30, 2025.
The group also underscored the resilience of its balance sheet. On a constant currency basis, total assets grew 6.1 per cent, while gross loans expanded 3.6 per cent. Deposits rose 4.9 per cent, with current account and savings account (CASA) balances climbing by 10 per cent, pushing the CASA ratio to 44 per cent from 40.9 per cent a year earlier. Credit quality metrics remained sound, with the gross impaired loans ratio improving to 2.1 per cent, the allowance coverage ratio at 100.7 per cent, and the common equity tier 1 (CET1) capital ratio holding at a solid 14.7 per cent.
CIMB’s cost-to-income ratio stood at 46.2 per cent for the first half, supported by a 1.1 per cent reduction in operating expenses despite ongoing investments in technology and resilience. Credit costs were contained at 29 basis points, affirming the group’s ability to navigate external challenges without compromising asset quality.
Group chief executive officer Datuk Novan Amirudin said the quarter’s performance highlighted the benefits of a deposit-led asset-liability management strategy, which preserved margin stability despite regional rate adjustments. He stressed that the group’s well-capitalised balance sheet and strong liquidity position ensured resilience and flexibility to pursue growth opportunities. He also noted that improving clarity on global tariffs had started to strengthen business confidence, providing a more supportive backdrop for the group in the second half of the year.
CIMB’s second-quarter results underline both its challenges and resilience. Softer margins underscore the vulnerability of interest income to regional monetary policy shifts, but the steady rise in NOII and improvements in CASA deposits show the benefits of diversification. With strong capital buffers and stable asset quality, the group remains positioned to weather short-term headwinds and deliver sustainable shareholder value, though the road ahead will depend heavily on the pace of global rate adjustments and regional economic momentum.
