CIMB Group Holdings Berhad (CIMB) delivered a resilient performance for the first half of 2025, posting a profit before tax of RM5.27 billion and net profit of RM3.86 billion despite challenging global conditions. The Group’s annualised return on average equity (ROE) stood at 11.1%, while earnings per share came in at 36.0 sen.
Although net profit slipped by 0.9% year-on-year, CIMB explained that on a constant currency basis, earnings would have risen 3.3%. To reward shareholders, the Group declared a first interim dividend of 19.75 sen per share, representing a total payout of RM2.1 billion with a consistent payout ratio of 55.5%.
Operating income increased by 1.9% quarter-on-quarter, supported by both net interest income and non-interest income. Net interest income remained steady at RM3.83 billion despite regional rate cuts, while non-interest income climbed 5.3% thanks to stronger trading performance. As a result, pre-provision operating profit expanded 4.5% quarter-on-quarter.
On a constant currency basis, CIMB also saw healthy balance sheet growth:
- Total assets expanded 6.1% year-on-year
- Gross loans grew 3.6% year-on-year
- Deposits increased 4.9% year-on-year, with CASA balances rising 10.0%
This lifted the CASA ratio to 44.0% as of June 2025, up from 40.9% a year earlier.
Strong Asset Quality and Capital Position
CIMB’s cost-to-income ratio stood at 46.2% for the first half of 2025, reflecting solid cost discipline even as investments in technology continued.
Asset quality also strengthened, with credit cost contained at 29 basis points and allowance coverage ratio at 100.7%. The gross impaired loans ratio improved to 2.1%, while the Common Equity Tier 1 (CET1) ratio remained robust at 14.7%.
Forward30 Strategy in Action
CIMB’s Forward30 Strategic Plan continues to gain traction across ASEAN. The Group has accelerated digital innovation, growth initiatives, and ecosystem support to position itself for long-term resilience.
Key highlights include:
- Expansion of the OCTO consumer app with new wealth offerings
- RM10 billion financing commitment for the Johor-Singapore Special Economic Zone
- Targeted initiatives in healthcare and real estate to strengthen SME growth
- Strong performance from TNG Digital, now serving 30 million customers and 2 million merchants
- Upcoming launch of OCTOBiz business banking app in Malaysia and Indonesia by 4Q25
The Group’s cross-selling strategy also delivered results, with fee and commission income rising 2.0% year-on-year, treasury client sales up 3.3%, and wealth assets under management growing 10.9%.
Group CEO, Novan Amirudin highlighted that proactive balance sheet management has preserved NIM stability, while strong capital and asset quality provide flexibility for future growth.
“Our well-capitalised balance sheet allows us to continue delivering sustainable returns while executing our long-term strategic priorities.
This reaffirms our commitment to creating value for shareholders and stakeholders alike,” he said.
CIMB’s 1H25 performance demonstrates a balanced approach to profitability, growth, and sustainability. Despite external headwinds, the Group has strengthened its fundamentals, rewarded shareholders with a significant dividend payout, and advanced its strategic priorities. With its focus on digitalisation, regional expansion, and sustainable finance, CIMB remains well-positioned to capture opportunities across ASEAN.
Shahriena Shukri is a journalist covering business and economic news in Malaysia, providing insights on market trends, corporate developments, and financial policies. More about Shahriena Shukri.
