KUALA LUMPUR: CIMB Group Holdings Bhd’s net profit slipped 3.7 per cent to RM1.9 billion for the second quarter (Q2) from RM1.96 billion in the same period last year.
The bank’s revenue or operating income was flat at RM5.6 billion as the net operating income growth from the gain on non-performing (NOII) loan sales in Indonesia was offset by lower net interest income (NII).
It declared first interim dividend of 19.75 sen per share based on a consistent payout ratio of 55.5 per cent, which translates to a total dividend payout of RM2.1 billion. It will be paid on Sept 30, 2025.
As a result, CIMB recorded a net profit of RM3.86 billion in the first half of financial year 2025, a 0.9 per cent lower than RM3.9 billion a year earlier.
Revenue for the six-month period also climbed 1.16 per cent to RM11.1 billion from RM11.23 billion, driven by NII and NOII.
NII remained stable at RM3.83 billion, up 0.4 per cent on quarterly basis despite continued rate cuts in Indonesia, Thailand and Singapore.
Meanwhile, NOII grew 5.3 per cent, on the back of strong trading income, which rose 10.4 per cent.
A deposit-led strategy combined with prudent asset-liability management also helped to keep net interest margin (NIM) steady at 2.15 per cent in the second quarter.
On a constant currency basis, CIMB’s total assets and gross loans grew by a healthy 6.1 per cent and
3.6 per cent, respectively without compromising asset quality.
The bank continues to expand total deposits by 4.9 per cent, with total current account saving account (CASA) growing 10 per cent.
This contributed to a positive CASA ratio of 44 per cent as at June 2025, up from 40.9 per cent recorded a year ago.
The group’s cost-to-income ratio (CIR) came in at 46.2 per cent in the 1Hf, reflecting overall cost discipline while operating cost declined 1.1 per cent although it continues to invest in technology and operational resilience.
Asset quality remained robust with additional reallocation of overlays in Q2, bringing 1H credit cost to 29 basis points and contributing to a healthy allowance coverage ratio at 100.7 per cent.
Gross impaired loans ratio improved to 2.1 per cent, while Common Equity Tier 1 ratio remains strong at 14.7 per cent.
CIMB group chief executive officer Novan Amirudin said as global tariff developments become clearer, business confidence is gradually improving.
“Our proactive asset-liability management has allowed us to preserve NIM stability through rate adjustments, supported by strong asset quality and a healthy loan-to-deposit ratio of 88 per cent.
“Our well-capitalised balance sheet not only ensures the resilience of our franchise but also provides us with the flexibility to execute future growth and strategic priorities.
“This allows us to continue delivering sustainable returns while supporting future capital distribution, reaffirming our commitment to create long-term sustainable shareholder value,” he added.
© New Straits Times Press (M) Bhd
