CIMB records resilient 1Q26, underpinned by disciplined execution of Forward30 strategy

26 May 2026

Delivers RM1.9 billion net profit, translating to 11.0% ROE 

Kuala Lumpur: CIMB Group Holdings Berhad (“CIMB” or “the Group”) delivered a resilient performance, recording a net profit of RM1.9 billion for the first quarter ended 31 March 2026 (“1Q26”), translating to return on equity (“ROE”) of 11.0% and earnings per share (“EPS”) of 17.8 sen. The performance reflected the Group’s steady underlying momentum despite FX and geopolitical headwinds, supported by disciplined execution of its Forward30 strategy. 

Operating income remained stable QoQ at RM5.4 billion, supported by strong non-interest income (“NOII”), which rose 11.9% QoQ to RM1.7 billion on stronger trading and FX income. This helped offset a 5.0% QoQ decline in net interest income (“NII”) to RM3.7 billion, due to Group net interest margin (“NIM”) compression of 2bps during the quarter, although the impact on NII was partially cushioned by asset growth. Nonetheless, the Group is seeing early signs of NIM compression bottoming out, with country-level NIM expanding QoQ by 1bp in Malaysia, 12bps in Singapore and 5bps in Thailand. 

CIMB’s total assets and gross loans grew marginally during the quarter, while its Cash-led strategy continued to gain traction. Total current account saving account (“CASA”) expanded further, bringing the CASA ratio to 43.3% as at Mar-26, from 42.7% in Dec-25. 

The Group remains relentless in becoming simpler, better and faster to drive productivity and efficiency. CIMB continues to simplify processes, strengthen execution and maintain strict cost discipline. During the quarter, operating expenses declined 5.5% QoQ, contributing to an improvement in the cost-to-income ratio (“CIR”) to 47.2% in Mar-26 from 49.9% in Dec-25, while investments in technology, data and AI remained within its target TCIR range of 8–9%.

Asset quality remained strong, with gross impaired loan ratio maintained at 1.7%, reflecting disciplined risk management amid a more uncertain macroeconomic environment. Capital and liquidity positions remained robust, with Common Equity Tier 1 (“CET1”) ratio at 14.3%, providing sufficient capacity to absorb potential headwinds and support future growth.

Forward30 progress

The Group is beginning to see the impact of its Forward30 strategy, with clear execution across the 4Cs. CIMB remains disciplined with Capital allocation, as reflected in the RM2 billion capital return programme announced in November 2025 and the recent sale of CIMB Thai’s automotive financing portfolio, a key milestone in CIMB Thai’s transformation programme. The divestment is expected to sharpen CIMB Thai’s operating model, with sale proceeds and capital released to be used to repay high-cost funding in Thailand, support growth in the Wealth and Wholesale segments, and return up to THB11 billion in capital to the Group.

Under its Cash strategy, CIMB is executing a Cash-led approach to optimise funding costs and cushion the impact of NIM compression. This contributed to a 7bps QoQ reduction in cost of funds, reflecting continued focus on strengthening the quality and sustainability of the Group’s funding base.

Cross-sell initiatives are also translating into stronger customer income, with fee and commission income rising 4.0% QoQ, and treasury client sales up 1.0% QoQ. CIMB is deepening customer relationships and capturing more opportunities across its regional platform, supported by its expanding wealth franchise and strategic partnerships. This includes the launch of its Private Wealth proposition in Indonesia, with a rollout in Malaysia planned for mid‑2026, followed by Singapore and Thailand by end‑2026, as well as its collaboration with Ant International to explore innovations in cross-border payments, cash management, treasury and liquidity management solutions.

Outlook

Commenting on the results, Novan Amirudin, Group Chief Executive Officer of CIMB Group said, “We are encouraged by the resilience of our performance and the early signs of NIM stabilisation, supported by disciplined balance sheet management and sustained customer activity across our core markets. As Forward30 gains traction, we remain focused on being disciplined with capital, strengthening our funding franchise and making the organisation simpler, better and faster to deliver sustainable long-term returns.”

“At the same time, we will continue investing in our digital and regional capabilities to strengthen our franchise, deepen customer relationships and capture longer-term growth opportunities across ASEAN. As we build for the future, we remain committed to being a trusted partner to our customers and SMEs as they navigate this challenging macroeconomic environment, including through repayment assistance programmes and customised restructuring and rescheduling solutions to help them build resilience.”   

“Looking ahead, CIMB remains cautiously optimistic. While our direct exposure to West Asia remains limited, we continue to assess potential second-order impacts on the broader macroeconomic and operating environment. We continue to see resilient asset and loan growth, supported by a healthy pipeline, alongside steady client franchise income across our key markets. Together with continued cost discipline, robust asset quality and disciplined capital allocation, the Group is well positioned to deliver sustainable performance and long-term value creation for our stakeholders, in line with our purpose of advancing customers and society.”