PETALING JAYA: CIMB Group Holdings Bhd
expects further reductions in operating costs moving forward, as it simplifies internal processes along with the deployment of technology and artificial intelligence (AI).
Group chief executive officer Novan Amirudin said its transformation programme under its Forward30 strategy was already yielding results, with operating expenses declining in the latest quarter.
“Simpler, better, faster. If something used to take six steps, why not three steps? If something used to take four steps, why not two steps?
“We make a process more efficient first, and then we apply technology.
“A combination of that will drive costs down,” he said at a press conference last Friday.
CIMB said operating expenses fell 1.6% quarter-on-quarter in the second quarter of 2026, contributing to a 200-basis-point improvement in its cost-to-income ratio to 45.2%.
Novan said the cost reduction strategy was not centred on reducing manpower, but on using technology alongside employees to improve productivity and free up capacity for higher-value work.
He cited how the bank now uses AI in early-stage credit collections, where automated calls can handle straightforward payment reminders while the team concentrates on more complicated customer cases.
CIMB is also deploying AI selectively in transaction monitoring, risk modelling and to equip relationship managers with better information when advising customers, particularly in wealth management.
“At the moment, it’s a lot on the processes first because I want the processes to be efficient. I don’t like clunky processes,” Novan said, adding that AI would subsequently be embedded more directly into products after improvements to services and processes.
Meanwhile, TNG Group has emerged as an increasingly important growth engine for CIMB, with its profitability accelerating significantly after reaching breakeven about 18 months ago.
Novan said TNG Digital Sdn Bhd’s growth trajectory since reaching breakeven had been substantially faster than CIMB initially expected.
“It’s been outperforming. The trajectory since then has been a lot faster than we have expected,” he said.
TNG Group recorded total profit of about RM90mil for the first half of 2026, representing a growth of more than 100% year-on-year, CIMB noted.
Novan said TNG was now a significant part of CIMB’s digital proposition, with its platform serving two out of every three Malaysians and providing opportunities for the group to combine the capabilities of its universal banking franchise with TNG’s digital reach.
“There’s a lot of plans, a lot of potential, and this is what differentiates CIMB from other banks,” he said.
CIMB owns 45% of TNG Digital and has been reallocating capital towards scalable digital businesses while pursuing growth opportunities in areas such as wealth management, cross-border trade, AI and data centres.
The group is also completing the disposal of its Thailand automotive financing business, which Novan said would return about seven billion baht – equivalent to roughly RM1bil – in capital to the group, subject to approval from the Bank of Thailand for its repatriation.
He said the capital would first be considered for higher-return growth businesses, with any excess potentially returned to shareholders after growth opportunities had been exhausted.
