CIMB Group Holdings (CIMB) Q4 2025 earnings summary

Executive summary

• Achieved record net profit of RM7.9 billion for FY25, with ROE at 11.3%, meeting Forward30 strategic targets and supported by stable NII, 3.1% NOII growth, and disciplined cost control.

• Asset growth of 6.1% YoY (ex-FX), with improved asset quality as GIL reached a record low of 1.7% and allowance coverage at 103.2%.

• Paid record dividend of 47.1 sen per share, totaling RM5.1 billion, including the first tranche of a RM2 billion capital return program running through 2027.

• Strategic focus on capital reallocation, digital transformation, sustainability, and operational capabilities under the Forward30 plan.

• Continued investment in technology, AI upskilling, and ESG initiatives, with recognition for sustainability leadership.

Financial highlights

• Net profit for FY25: RM7.9 billion (up 1.7% YoY); profit before tax: RM10.7 billion (up 2.7% YoY); operating income: RM22.5 billion (up 0.7% YoY).

• NII was flat YoY at RM15.3 billion; NOII grew 3.1% YoY to RM7.1 billion, driven by trading, FX, and fee income.

• NIM compressed by 8bps YoY to 2.10%–2.13%, but Malaysia NIMs expanded 4bps Q-on-Q.

• Cost-to-income ratio at 47.3%, slightly above guidance due to 2% OpEx growth.

• Loan growth at 3.1% YoY constant currency; total assets at RM778.7 billion; CASA ratio at 42.7%.

Outlook and guidance

• 2026 ROE target set at 11%–11.5%, with midterm (2027) target of 12%–13%.

• Asset growth guidance of 5%–7% for 2026; loan growth in Malaysia expected at 4%–5%, Indonesia at 3%–5%, Singapore high single digits, Thailand negative.

• Group NIM guidance of ±5bps; Malaysia NIM stable to slightly expanding; CIR targeted below 47%; credit costs expected at 25–35bps; CET1 to remain at or above 14%.

• NOII expected to grow faster than NII, with focus on client franchise and bond business.

• The Group remains cautiously optimistic for 2026, focusing on prudent growth, NIM management, and digital innovation.