PETALING JAYA: CIMB Group Holdings Bhd
’s financial year ended Dec 31, 2025 (FY25) results met expectations, with most analysts maintaining their “buy” calls, citing a strong and liquid balance sheet, inexpensive valuations and attractive dividend yields.
RHB Research noted that CIMB’s fourth quarter ended Dec 31, 2025 (4Q25) results were in line, despite a seasonally softer quarter for non-interest income.
Net interest margin (NIM) improved quarter-on-quarter, an all-time low gross impaired loan ratio and a liquid balance sheet are some key positives although its 2026 guidance looked modest, partly as it expected foreign exchange to be a headwind, it said.
On the lender’s 2026 outlook, RHB Research said CIMB targeted a return on equity (ROE) of 11% to 11.5% for 2026, backed by 5% to 7% asset growth while the guidance for NIM and credit cost (of 25-35 basis points) suggest stabilisation ahead.
“Foreign exchange though, could be a headwind. CIMB believes it is on track to achieve its Forward30 mid-term checkpoint of 12% to 13% ROE in 2027.”
It planned to allocate capital to higher-ROE markets (for example, Singapore, where ROE was 18%) and businesses, such as wealth, wholesale as well as transaction banking, it added.
Meanwhile, it also expected Malaysia’s NIM to be stable to slightly higher, Indonesia NIM could improve if the liquidity environment stayed benign but Singapore NIM could be impacted by further declines in benchmark rates, it said.
For now, it noted that CIMB is keeping its 55% ordinary dividend payout ratio, but would continue to reassess opportunities to raise the payout – one method of which would be to extract higher dividends from subsidiaries.
RHB Research has raised FY26-FY27 profit after tax and minority interests by 3% on better efficiencies, but its RM9 target price for the stock is retained.
“Our dividend per share projections assume a 55% ordinary payout ratio plus an even distribution over 2026-2027 of the remaining RM2bil capital return plan, it said.
In its report, Hong Leong Investment Bank (HLIB) Research said it is maintaining its “buy” call with a higher target price of RM9.90, based on 1.37 times price to book after rolling forward to FY27.
This implies +2 standard deviation above its five-year pre-pandemic mean, justified by structurally stronger ROE.
“CIMB remains the most undemanding large-cap bank in our coverage on price to earnings and price to book, while offering more than 6% forward yields,” it said.
HLIB Research said a potential re-rating could emerge from ongoing capital optimisation as well.
“CIMB remains one of our top picks for the first half of 2026,” it said.
At last look, the stock was at RM7.95.
