CIMB posts RM1.9bil Q1 profit, sees early signs of net interest margin stabilisation

KUALA LUMPUR: CIMB Group Holdings Bhd recorded a net profit of RM1.9 billion for the first quarter ended March 31, 2026 (Q1 FY26), translating into return on equity (ROE) of 11 per cent and earnings per share (EPS) of 17.8 sen.

The bank said the performance reflected steady underlying momentum despite foreign exchange (forex) and geopolitical headwinds, supported by its Forward30 strategy.

Operating income was stable quarter-on-quarter (QoQ) at RM5.4 billion, driven by strong non-interest income (NOII), which rose 11.9 per cent QoQ to RM1.7 billion on stronger trading and forex gains. This offset a 5.0 per cent QoQ decline in net interest income (NII) to RM3.7 billion due to group net interest margin (NIM) compression of 2.0 basis points (bps) during the quarter.

CIMB said there are early signs of NIM compression bottoming out, with country-level NIM expanding QoQ by 1.0 bps in Malaysia, 12 bps in Singapore and 5 bps in Thailand.

Group chief executive officer Novan Amirudin said CIMB is encouraged by the resilience of the group’s performance and the early signs of NIM stabilisation.

“As Forward30 gains traction, we remain focused on being disciplined with capital, strengthening our funding franchise and making the organisation simpler, better and faster to deliver sustainable long-term returns.

“At the same time, we will continue investing in our digital and regional capabilities to strengthen our franchise, deepen customer relationships and capture longer-term growth opportunities across Asean,” Novan said in a statement.

Looking ahead, Novan said CIMB remains cautiously optimistic.

“While our direct exposure to the Middle East remains limited, we continue to assess potential second-order impacts on the broader macroeconomic and operating environment. We continue to see resilient asset and loan growth, supported by a healthy pipeline, alongside steady client franchise income across our key markets,” he said.

CIMB’s total assets and gross loans grew marginally during the quarter, while its cash-led strategy continued to gain traction.

The current account savings account (CASA) expanded further, bringing the CASA ratio to 43.3 per cent as at March 2026, from 42.7 per cent in December 2025.

During the quarter, operating expenses declined 5.5 per cent QoQ, contributing to an improvement in the cost-to-income ratio (CIR) to 47.2 per cent in March 2026 from 49.9 per cent in December 2025, while investments in technology, data and AI remained within its target TCIR range of 8.0 per cent to 9.0 per cent.

Asset quality remained strong, with the gross impaired loan ratio maintained at 1.7 per cent.

Capital and liquidity positions remained robust, with the Common Equity Tier 1 (CET1) ratio at 14.3 per cent, providing sufficient capacity to absorb potential headwinds and support future growth.

© New Straits Times Press (M) Bhd

المصدر: New Straits Times