KUALA LUMPUR: CIMB Group Holdings Bhd
is doubling down on the bank’s RM2bil multi-year capital return programme through 2027, while positioning client needs, digital innovation and tokenisation as central growth drivers.
Chief executive officer Novan Amirudin, speaking at the media briefing last Friday on the bank’s fourth-quarter ended Dec 31, 2025 and full-year (FY25) results, said, “Our RM2bil capital return programme runs through 2027, covering this year and next.
“The execution may take the form of special dividends, as we did with the first tranche last quarter, or share buybacks, depending on market conditions and where our share price is trading.”
Novan highlighted the decision ultimately comes down to what delivers the best value to the bank’s stakeholders.
“We have consistently paid special dividends over the past few years, even before announcing this multi-year programme, and we will continue to assess the most effective capital management options going forward,” he added.
The bank became the first Malaysian company to announce a multi-year capital return programme of up to RM2bil in November last year.
Novan also emphasised that CIMB’s FY26 strategy will remain firmly focused on anticipating and fulfilling client needs.
For instance, he pointed out both the domestic and Asean bond markets expanded significantly faster than loan growth in FY25, reflecting a market-driven shift toward capital market financing.
“When customers raise financing, it is not necessarily through loans.
“If it is more efficient to access the bond market, we will advise them accordingly and underwrite those bonds.
“Our role as an adviser is to ensure clients obtain the most suitable financing solution, whether through loans, bonds or the broader capital market, rather than forcing people to take loans,” he said.
He explained that in an environment where interest rates were falling globally, credit spreads were tightening for certain categories of issuers. “It was, hence, more efficient for clients to raise financing via the bond market,” he said.
That said, the bank expects loan growth of 4% to 5% in FY26, broadly in line with Malaysia’s gross domestic product (GDP) growth.
He noted the projection reflects the balanced approach to asset expansion across key markets factoring in the relative size of its operations in each country.
“In Malaysia, where we are a large player, growth will likely track GDP.
“But we are not necessarily fixated on a certain loan market. More importantly for us is how to mobilise our capital and deposits towards assets,” he told reporters after the group’s financial briefing.
Besides that, the bank projects a 5% to 7% growth on a constant currency basis, Novan remarked.
He expects foreign-exchange volatility to persist but said this would not disrupt the bank’s Forward30 (F30) strategic roadmap.
“We are not going to allow that noise to impact our execution towards 2030,” he explained, adding that CIMB remains focused on executing its four strategic priorities (4C), premised on capital reallocation, building strong cash franchise, cross-selling products and improving digital and technology capabilities.
On the profitability front, CIMB has guided for a return on equity (ROE) of 11% to 11.5% for FY26.
Novan said the bank remains on course to reach its ROE target of 12% to 13% by 2027, a prominent milestone under F30.
The bank targets a cost-to-income ratio of about 47%, noting a loan-loss charge of 25% to 35 basis points and a common equity tier-1 ratio of 14% or higher.
Meanwhile, the bank would be deploying technology to provide effective solutions to customers while reducing cost-to-serve, investment in artificial intelligence training, and future-proofing its workforce.
“When we stay true to our purpose of advancing customers and society, we can deliver both resilience and growth.
“As we look ahead, we will continue to build a stronger, more sustainable CIMB; one that serves with integrity, grows with courage, and creates sustainable long-term value for our shareholders and the communities we are privileged to serve,” Novan said, reiterating the bank’s strong outlook for 2026.
