CIMB Group Holdings Berhad (CIMB or the Group) reported a resilient performance for the nine months ended 30 September 2025 (9M25), delivering profit before tax (PBT) of MYR 8.12 billion ($1.70 billion) and an annualised return on average equity (ROE) of 11.3%. Earnings per share (EPS) stood at 55.3 sen, reflecting disciplined execution of the Group’s Forward30 strategy despite macroeconomic headwinds and persistent rate cuts across key ASEAN markets.

Third-quarter momentum lifts nine-month results

The Group recorded a strong performance in the third quarter of 2025, with PBT rising 7.3% YoY to MYR 2.84 billion ($596 million) and net profit up 10% to MYR 2.08 billion ($437 million), bringing cumulative net profit for 9M25 to MYR 5.94 billion ($1.25 billion).

Operating income rose 6.2% quarter-on-quarter, supported by a 20.3% QoQ increase in non-interest income (NOII) to MYR 2.13 billion ($447 million). Net interest income (NII) remained stable at MYR 3.82 billion ($802 million), with Group net interest margin (NIM) holding at 2.08%, underpinned by strategic repricing and proactive capital management undertaken in earlier quarters.

Stronger capital position enables MYR 2 billion ($420 million) capital return

CIMB’s capital ratios remained healthy, with the Common Equity Tier 1 (CET1) ratio improving approximately 10 bps QoQ to 14.8% as at end-September 2025. With its strengthened capital base, CIMB announced an intention to return up to MYR 2.0 billion ($420 million) to shareholders by end-2027 via special dividends and/or share buybacks, subject to market conditions and regulatory approvals.

As part of this programme, the Group declared special dividends of up to MYR 760.2 million ($159.6 million), or 7.0 sen per share, payable on 24 December 2025, in addition to regular dividends.

CASA-led funding strength and steady asset expansion

On a constant currency basis, deposits rose 9.1% YoY to MYR 518.1 billion ($108.8 billion), while current account savings account (CASA) balances grew 15.3% YoY, lifting the CASA ratio to 44.1% as at September 2025. CIMB attributed this to its Forward30 cash strategy, which helped cushion NIM compression amid persistent rate cuts.

Gross loans expanded 3.3% YoY to MYR 448.2 billion ($94.1 billion), while total assets increased 5.1% YoY to MYR 778.5 billion ($163.5 billion).

Disciplined cost management and stable asset quality

Operating expenses grew a controlled 1.6% YoY, resulting in a cost-to-income ratio (CIR) of 46.5%, while still supporting investments in technology and operational resilience. Pre-provisioning operating profit (PPOP) remained stable YoY at MYR 9.13 billion ($1.92 billion).

Asset quality held steady, with total provisions declining to MYR 330 million ($69.3 million) due to corporate recoveries recorded in the third quarter of 2025. Loan loss charge (LLC) normalised to 33 bps, within full-year guidance. Gross impaired loans (GIL) improved to 1.9%, with allowance coverage rising to 102.8%.

Forward30 strategy gains traction with digital-first execution

CIMB continued to advance its Forward30 strategy anchored on Capital, Cash, Cross-sell and Capabilities. In the third quarter of 2025, the Group rolled out several digital-first initiatives, including CIMB OCTO Biz for SME empowerment and the management of the BUDI95 system via TNG Digital Sdn Bhd — reinforcing CIMB’s role as a responsible financial intermediary expanding economic participation.

The Group also entered the Panda Bond market with a landmark RMB 3.0 billion three-year issuance, the largest single-tranche deal by a Malaysian institution and the second largest from an ASEAN issuer. The issuance strengthens CIMB’s role as a financial bridge between China and ASEAN, supporting cross-border investment and trade flows.

ESG leadership recognised with upgrade to MSCI AAA

CIMB’s MSCI ESG Rating was upgraded from AA to AAA, driven by strengthened disclosure in consumer protection and workforce management. Its S&P Corporate Sustainability Assessment 2025 score improved from 78 to 82. The Group ranked number 1 out of 400 global financial institutions in the World Benchmarking Alliance 2025 Financial System Benchmark and number 2 globally in Inclusive Finance.

Outlook

Group CEO Novan Amirudin said the latest capital return aligns with Forward30’s disciplined capital approach: “This capital return forms part of our Forward30 strategy to always be disciplined with capital and reflects the Group’s confidence in the long-term performance trajectory.”

He added: “Our resilient performance this quarter underscores the strength of our diversified franchise, the trust of our customers, and the impact of our digital and operational enhancements. The momentum will carry through to anchor our ability to navigate a challenging macroeconomic landscape.”

Looking ahead: “As we head into the final quarter of 2025, we remain optimistic in closing the year on a strong footing and meeting all our targets. While it may take some time for the dust to settle with the new world order, we expect NIMs to stabilise and we will continue investing for long-term growth.”

Re-disseminated by The Asian Banker