PETALING JAYA: CIMB Group Holdings Bhd
has announced the sale of CIMB Thai Bank Public Co Ltd’s (CIMB Thai) automotive financing portfolio to Bank of Ayudhya Public Co Ltd and its subsidiary Krungsri.
The deal was carried out at a modest premium to adjusted net book value.
In a statement, CIMB Group said the sale forms part of the group’s ongoing Forward30’s strategic plan is to exit non-core businesses while reallocating capital to grow, ensuring sustainable returns and disciplined resource allocation across its Asean franchise.
“The portfolio sale marks a key milestone in CIMB Thai’s ongoing comprehensive transformation programme, which includes operating model enhancements, branch and cost base optimisation, portfolio rebalancing and repositioning towards higher-return banking segments, such as wealth management and regional wholesale banking.
“Following completion of this transformation, the group expects CIMB Thai’s return on equity to improve towards double-digit levels and be accretive to the group over the medium term, supported by a more focused franchise and optimised capital deployment.”
CIMB Group said its earlier guidance for 2026 financial targets has incorporated the impact of this sale and related one-off cost.
Its group chief executive officer Novan Amirudin said the transaction reflects disciplined execution of its Forward30 strategy as it continues sharpening its portfolio across Asean and exiting non-core businesses.
“We are strengthening the capital allocation and positioning of CIMB Thai for more sustainable profitability and growth.
“The restructuring enhances CIMB Thai’s competitiveness and focus, while allowing the group to redeploy capital into priority growth areas that deliver stronger long-term shareholder returns.”
Moreover, CIMB Thai remains an integral component of its regional platform.
“CIMB Thai will continue leveraging its domestic franchise to support intra-Asean trade and investment flows, cross-border corporate, affluent banking opportunities and regional client connectivity in line with CIMB’s aspiration to be the top-of-mind Asean bank.”
CIMB Thai recorded a net profit of 908.2 million baht (RM112.11mil), an increase of 70.1 million baht or 8.4% year-on-year (y-o-y), in the first quarter of financial year 2026 (1Q26), as compared to 1Q25, it announced in a statement last month.
Furthermore, CIMB Thai said the improved performance was mainly owing to a 0.6% decline in operating expenses and a 21.1% decrease in expected credit losses, offsetting the 3.1% decline in operating income.
