CIMB Group Holdings (CIMB) Q2 2025 earnings summary

Executive summary

• Delivered resilient 1H25 performance with annualised ROE at 11.1% and EPS at 36.0 sen, amid macro headwinds and FX volatility, with Malaysia and Singapore offsetting Indonesia's currency impact.

• Net profit for 1H25 was RM3.86 billion, down 0.9% YoY on reported basis, but up 3.3% on constant currency; business momentum improved quarter-on-quarter.

• Operating income for 1H25 was RM11.10 billion, down 1.2% YoY, but up 1.9% QoQ; PPOP up 4.5% QoQ, driven by both NII and NOII growth.

• Maintained stable NIM at 2.15% for Q2 2025 despite rate cuts in key markets; asset quality remained robust with GIL at 2.1% and allowance coverage at 100.7%.

• Proposed first interim dividend of RM2.1 billion (19.75 sen per share), maintaining a 55.5% payout ratio; CET1 ratio at 14.7%.

Financial highlights

• Operating income up 1.9% QoQ; non-interest income grew 5.3% QoQ, driven by trading income.

• Net interest income flat YoY at RM7,652 million; up 0.4% QoQ in 2Q25; total assets grew to RM769.2 billion as of June 2025.

• Cost-to-income ratio at 46.2% for 1H25; operating costs declined 1.1% QoQ; tech cost-to-income at 7.9%.

• Credit cost at 29bps for 1H25; allowance coverage above 100%.

• CASA deposits up 10% YoY; CASA ratio at 44.0%; AUM up 10.9% YoY.

Outlook and guidance

• Maintains 2025 guidance with FY25 ROE at 11.0–11.5% and CIR below 46.7%; expects gradual improvement in business confidence as macro clarity increases.

• Loan growth expected at 5–7% on constant currency basis; loan loss charge guided at 25–35bps; CET1 ratio to remain ≥14.0%.

• NIM guidance: expects 5–8bps compression YoY, with sequential contraction in Q3 before stabilization.

• Focus on deposit-led growth, prudent capital allocation, cost discipline, and asset quality.

• Continued investment in digital enablement, operational resilience, and sustainability initiatives.