CIMB Niaga looks to adopt stricter pricing discipline

HLIB Research said CIMB Niaga could see some sequential compression in net interest margin in the second quarter of this year.

PETALING JAYA: CIMB Group Holdings Bhd’s Indonesian banking arm will likely implement a more stringent pricing policy for new loans to mitigate the impact of higher interest rates in the country.

With the recent rate hike by Bank Indonesia, CIMB Niaga, a 92.5% indirectly held subsidiary of CIMB, could see some sequential compression in net interest margin (NIM) in the second quarter of this year (2Q24).