KUALA LUMPUR: CIMB Group Holdings Bhd
's second-quarter performance reflects the continued execution of its Forward30 strategy and the strength of its banking franchise, said group CEO Novan Amirudin..
"Structural shifts across Asean, shaped by evolving geopolitical dynamics and how AI are transforming industries, are presenting us with new opportunities for growth," he said in his review of the quarterly results.
"We have expanded our customer wallet share in key segments, extracted value from our Simpler, Better, Faster initiatives while maintaining robust asset quality. These outcomes strengthen our confidence in our strategic direction and ability to deliver consistent performance across market cycles.”
In the second quarter ended June 30, 2026, CIMB posted a net profit of RM1.94bil on revenue of RM5.56bil as compared to a net profit of RM1.89bil and revenue of RM5.6bil.
After six months, the group's net profit came to RM3.85bil against a net profit of RM3.86bil in the year-ago period, while revenue dipped to RM10.97bil from RM11.1bil previously.
The group declared a first interim dividend of 19.65 sen per share. The entitlement and payments dates are on Sept 17 and 30, 2026, respectively.
During the quarter under review, CIMB said total income grew 2.8% quarter-on-quarter (q-o-q) to RM5.56bil with higher contribution from both net interest income (NII) and non-interest income (NOII).
NOII increased 6% q-o-q to RM1.83bil, driven by higher franchise fees and sustained client sales momentum.
NII rose 1.3% q-o-q to RM3.73bil, underpinned by assets and loans growth of 2.2% and 1.1% respectively, on a constant currency basis, which offset a moderate contraction in net interest margin (NIM).
"The group is expecting NIM pressures to progressively ease, supported by loan repricing in Indonesia and continued growth in lower-cost deposits across its key markets," it said.
On a constant currency basis, total deposits grew 2.5% q-o-q, funding the group’s asset growth.
Meanwhile, operating expenses declined 1.6% q-o-q, which contributed to a 200 basis points improvement in cost-to-income ratio to 45.2%.
Moving into the second half of the year, the group said its focus remains on sustaining strong asset and loan growth, underpinned by a healthy loan pipeline, alongside ongoing operational efficiencies and stronger execution across our growth engines.
"We will also maintain disciplined capital allocation as demonstrated through our exit in CIMB Thailand’s auto business, while doubling down on our unique digital proposition at scale through the combined strengths of our universal bank and TNG Group.
"Backed by strong capital position, we are committed to deliver on our earlier announced multi-year capital return plan while we continue to create long-term value for our customers, stakeholders and the communities we serve."
