25 May 2025
Kuala Lumpur: CIMB Group Holdings Berhad (“CIMB” or “the Group”) delivered positive financial performance with an increase of 11.2% quarter-on-quarter (“QoQ”) and 2.1% year-on-year (“YoY”) in profit before tax (“PBT”) to RM2.63 billion for the first quarter ended 31 March 2025. Net profit grew 9.6% QoQ and 1.9% YoY to RM1.97 billion, leading to a return on average equity (“ROE”) of 11.4% and an earnings per share (“EPS”) of 18.4 sen.
1Q25 operating income increased 3.2% QoQ but eased 2.3% YoY to RM5.50 billion from net interest margin (“NIM”) compression; however, this was offset by asset growth. NII increased marginally QoQ and YoY to RM3.82 billion. Meanwhile, NOII grew 11.1% QoQ driven by an 18.9% rise in treasury client sales and a 12.6% increase in fee and commission income. On a YoY basis, NOII contracted 8.5% to RM1.68 billion, affected by lower sales of non-performing loans and proprietary trading.
On a constant currency basis, CIMB’s total assets and gross loans increased by 5.1% and 4.4% YoY, respectively. The Group’s deposit-led strategy continues to expand total deposits by 2.7% YoY, with total current account saving account (“CASA”) inflows growing 7.4% YoY. This boosted the CASA ratio to 43.8% as at Mar-25, up from 40.8% recorded as at Mar-24. The Group’s growing CASA base and favourable funding mix helped lower cost of funds by 4 basis points QoQ and 11 basis points YoY. Prudent asset-liability management also helped maintain a stable NIM of 2.16% in 1Q25 – unchanged from 4Q24, despite rate cuts in Thailand, Indonesia and Singapore.
The Group’s cost-to-income ratio (“CIR”) stood at 46.9% in 1Q25, attributed to sustained cost prudence, but not at the expense of investments in technology and resilience. Technology investments increased 5.0% YoY.
Meanwhile, total provisions remained contained at RM311 million with credit cost improving to 26bps, as compared to 35bps in 1Q24. Gross impaired loans (“GIL”) ratio decreased by 40bps YoY to 2.2%, with additional forward overlays of RM100 million in 1Q25 which led to a healthy allowance coverage ratio at 102.4%. The Group also continues to maintain a strong capital position, with Common Equity Tier 1 (“CET1”) ratio at 14.7%.
Forward30 Strategic Plan
The Group continues to effectively execute the Forward30 strategic plan with emphasis on customer centricity, operational efficiency and sustainable banking practices. During the quarter, the Group transitioned its leadership in Thailand and Cambodia, and have included Thailand, Cambodia and Singapore as part of the Group’s growth markets to sharpen strategic focus and drive growth in priority segments. In the medium term, CIMB believes the evolving global landscape will continue to present new opportunities, particularly in intra-ASEAN trade, where the Group’s integrated ASEAN franchise is poised to seize growth prospects.
The Group is well-positioned to navigate the ongoing market uncertainties, supported by minimal exposure to trade-related loans and clients with direct U.S export dependencies. With a strong asset quality and healthy loan-to-deposit ratio of 88.9%, CIMB’s prudent portfolio strategy mitigates risks from potential tariff-related headwinds, reinforces balance sheet stability, and ensures capacity to fund future growth amid global volatility.
Outlook
Novan Amirudin, Group Chief Executive Officer of CIMB Group said, “Our first quarter performance underscores the continued strength of our diversified ASEAN portfolio with strong contributions across multiple income segments, particularly from our client franchise income which has shown consistent growth since 2022. We have maintained healthy asset quality and exercised disciplined cost controls to enhance resilience amid a dynamic operating environment.”
“In an increasingly uncertain market condition, we remain committed to being a reliable and trusted partner for our customers. Our emphasis on sound risk management and operational discipline places us in a position of strength to support clients, safeguard stability and deliver shareholder value. The emergence of the ‘new world order’ is shaping a more multipolar global landscape, with ASEAN poised to play a pivotal role as a regional connector in trade and capital flows. Our presence across 10 countries puts us in a prime spot of this shift to support our clients in navigating cross-border growth and advancing deeper regional integration.”
“With disciplined execution of our Forward30 strategic plan, we are confident in our ability to deliver both short- and long-term targets, backed by the strength of our franchise. We will remain disciplined and proactive with capital optimisation, including returning excess capital to our shareholders as we have demonstrated over the last two years. Our strong asset quality and ASEAN presence will continue to underpin our performance and position the Group for sustainable growth, anchored in our purpose of advancing customers and society.”
