Malaysia’s banking giant, CIMB Group Holdings Berhad, has just unveiled its First Quarter 2025 financial results, offering a glimpse into its robust performance despite a dynamic operating environment. The Group reported commendable growth in both profit before tax and net profit for the quarter, underscoring the resilience of its diversified ASEAN portfolio. With a return on average equity (ROE) of 11.4% and earnings per share (EPS) of 18.4 sen, CIMB continues to demonstrate its ability to deliver value to shareholders.
This quarter’s report highlights CIMB’s consistent profitability and strategic execution, positioning it strongly amidst evolving market conditions. Let’s dive deeper into the numbers and what they mean for the Group’s journey ahead.
Financial Performance: A Closer Look
For the first quarter ended 31 March 2025, CIMB Group achieved a positive financial performance. Profit before tax saw a healthy increase, while net profit also climbed, reflecting the Group’s operational efficiency and strategic focus.
Year-on-Year Performance (First Quarter 2025 vs First Quarter 2024)
First Quarter 2025
Profit Before Tax (PBT): RM2.63 billion
Net Profit: RM1.97 billion
Operating Income: RM5.50 billion
Earnings Per Share (EPS): 18.4 sen
First Quarter 2024
Profit Before Tax (PBT): RM2.57 billion
Net Profit: RM1.94 billion
Operating Income: RM5.63 billion
Earnings Per Share (EPS): 18.2 sen
The Group’s profit before tax increased by 2.1% compared to the same period last year, reaching RM2.63 billion. Net profit also rose by 1.9% to RM1.97 billion. While operating income eased slightly by 2.3% to RM5.50 billion, primarily due to net interest margin compression, this was largely offset by robust asset growth. Net interest income (NII) remained marginally stable compared to the previous year, standing at RM3.82 billion. Non-interest income (NOII), however, contracted by 8.5% to RM1.68 billion, influenced by lower sales of non-performing loans and proprietary trading activities.
Driving Factors Behind the Numbers
CIMB’s strategic emphasis on a deposit-led approach continues to yield positive results. Total deposits expanded by 2.7% compared to the previous year, with a significant 7.4% increase in current account saving account (CASA) inflows. This boosted the CASA ratio to 43.8% as at March 2025, up from 40.8% in March 2024. This favorable funding mix played a crucial role in lowering the cost of funds by 11 basis points compared to the previous year, helping to maintain a stable net interest margin of 2.16% despite rate cuts in key markets like Thailand, Indonesia, and Singapore.
Asset quality also showed improvement. The Group’s cost-to-income ratio (CIR) stood at a prudent 46.9% in the first quarter of 2025, reflecting sustained cost management without compromising investments in technology and resilience, with technology investments increasing by 5.0% compared to the previous year. Total provisions were contained at RM311 million, and credit cost improved to 26 basis points from 35 basis points in the first quarter of 2024. The gross impaired loans (GIL) ratio decreased by 40 basis points compared to the previous year, settling at 2.2%, supported by additional forward overlays of RM100 million. This contributed to a healthy allowance coverage ratio of 102.4%. Furthermore, CIMB continues to maintain a strong capital position, with its Common Equity Tier 1 (CET1) ratio at a robust 14.7%.
Quarter-on-Quarter Performance (First Quarter 2025 vs Fourth Quarter 2024)
Looking at the quarter-on-quarter performance, CIMB’s operating income increased by 3.2% to RM5.50 billion from RM5.33 billion in the fourth quarter of 2024. This was primarily driven by an 11.1% growth in non-interest income, fueled by an 18.9% rise in treasury client sales and a 12.6% increase in fee and commission income.
Performance across business units varied:
- Consumer Banking: Profit Before Tax surged by 67.6% to RM786 million, up from RM469 million in the previous quarter, driven by higher operating income, lower operating expenses, and reduced provisions in Indonesia.
- Commercial Banking: Profit Before Tax was 18.8% lower at RM437 million, compared to RM538 million in the previous quarter, mainly due to the absence of writebacks in Malaysia and Indonesia.
- Wholesale Banking: Profit Before Tax rose by 21.6% to RM1,035 million, up from RM851 million, largely attributed to a strong performance in treasury and markets.
- CIMB Digital Assets & Group Funding: Profit Before Tax decreased by 26.8% due to a weaker performance at CIMB Philippines.
Overall, the Group’s profit before tax and net profit improved by 11.2% and 9.6% respectively quarter-on-quarter, demonstrating a positive sequential momentum.
Navigating the Future: Risks and Strategic Outlook
CIMB Group remains focused on the effective execution of its “Forward30” strategic plan, which prioritizes customer centricity, operational efficiency, and sustainable banking practices. During the quarter, the Group made strategic leadership transitions in Thailand and Cambodia, and has integrated Thailand, Cambodia, and Singapore into its growth markets to sharpen strategic focus and accelerate growth in priority segments.
The Group acknowledges the ongoing market uncertainties, particularly those stemming from persistent global headwinds and the evolving tariff and trade environment. However, CIMB is well-positioned to navigate these challenges, supported by minimal exposure to trade-related loans and clients with direct U.S. export dependencies. A strong asset quality and a healthy loan-to-deposit ratio of 88.9% further reinforce CIMB’s balance sheet stability, ensuring its capacity to fund future growth amidst global volatility.
According to Novan Amirudin, Group Chief Executive Officer of CIMB Group, the first quarter performance underscores the continued strength of their diversified ASEAN portfolio, with strong contributions across multiple income segments, especially from their client franchise income, which has shown consistent growth since 2022. He emphasized the Group’s commitment to sound risk management and operational discipline, which places them in a position of strength to support clients, safeguard stability, and deliver shareholder value.
Looking ahead, CIMB believes the emergence of a more multipolar global landscape positions ASEAN to play a pivotal role as a regional connector in trade and capital flows. With its extensive presence across 10 countries, CIMB is strategically located to support its clients in navigating cross-border growth and advancing deeper regional integration. The Group is confident in its ability to deliver on both short-term and long-term targets through disciplined execution of its Forward30 strategic plan, including a commitment to capital optimization and returning excess capital to shareholders.
Summary and Outlook
CIMB Group’s First Quarter 2025 results paint a picture of a resilient and strategically focused banking institution. Despite facing external headwinds such as net interest margin compression and global trade uncertainties, the Group has demonstrated strong profitability and solid asset quality.
- Robust Profitability: Both profit before tax and net profit showed positive growth compared to the same period last year, driven by strategic asset growth and effective cost management.
- Improved Asset Quality: A notable reduction in the gross impaired loans ratio and contained provisions indicate a healthy loan portfolio and prudent risk management.
- Strategic Deposit Growth: The success of its deposit-led strategy, particularly the increase in CASA, has favorably impacted funding costs and net interest margin stability.
- Forward-Looking Strategy: The “Forward30” plan, with its focus on customer centricity, operational efficiency, and sustainable banking, along with strategic market expansions within ASEAN, positions CIMB for future opportunities.
The Group’s leadership remains optimistic about its ability to navigate dynamic market conditions, leveraging its diversified ASEAN franchise and disciplined execution to deliver sustainable growth and shareholder value.
As a Malaysian retail investor, it’s reassuring to see CIMB’s consistent focus on strengthening its core operations and expanding its regional footprint, especially within the promising intra-ASEAN trade landscape. The emphasis on prudent risk management and capital optimization suggests a balanced approach to growth.
What are your thoughts on CIMB’s latest performance? Do you believe their strategic focus on ASEAN integration and digital capabilities will be key drivers for sustained growth in the coming years? Share your insights in the comments below!
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