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Tag: CIMB Group Holdings Bhd

CIMB Group’s net profit drops 2.9 percent to RM1.91 billion in first quarter of 2026

KUALA LUMPUR: CIMB Group Holdings Bhd's net profit for the first quarter ended March 31, 2026 (Q1 2026) declined 2.9 percent to RM1.91 billion from RM1.97 billion in the same period last year. According to the group, the net profit translated into a return on equity (ROE) of 11.0 percent and earnings per share of 17.8 sen. “This performance reflects stable underlying momentum despite foreign exchange (FX) and geopolitical headwinds, supported by the disciplined execution of the Forward30 strategy,” he said in a filing to Bursa Malaysia yesterday. In addition, the group's revenue also increased 1.6 percent to RM5.41 billion from RM5.49 billion, despite strong non-interest income (NOII), which increased 11.9 percent quarter-on-quarter to RM1.7 billion, driven by stronger trading and FX income. "This helped offset a five per cent quarter-on-quarter decline in net interest income (NII) to RM3.7 billion, due to a two basis point compression in the group's net interest margin (NIM) during the quarter, although the impact on NII was partly offset by asset growth," it said. However, CIMB Group is seeing early signs of NIM sustainability approaching, with country-level NIM growing quarter-on-quarter by one basis point in Malaysia, 12 basis points in Singapore and five basis points in Thailand. CIMB's total assets and gross loans increased slightly in the quarter, while its cash-based strategy continued to gain traction. The total current account balance of savings accounts (CASA) continued to grow, bringing the CASA ratio to 43.3 percent in March 2026 from 42.7 percent in December 2025. During the quarter, operating expenses declined 5.5 percent quarter-on-quarter, contributing to a strengthening in the cost-to-income ratio (CIR) to 47.2 percent in March 2026 from 49.9 percent in December 2025. Investments in technology, data and artificial intelligence (AI) remained within its target technology cost-to-income ratio range of eight to nine percent, while asset quality remained strong, with the gross impaired loan ratio remaining at 1.7 percent. This reflects disciplined risk management amidst a more uncertain macroeconomic environment. Meanwhile, the capital and liquidity position remains strong, with a Common Equity Tier 1 ratio at 14.3 percent, providing sufficient capacity to absorb potential headwinds and support future growth. On the outlook, Group Chief Executive Officer Novan Amirudin said the group would continue to invest in its digital and regional capabilities to strengthen its franchise, enhance customer relationships, and seize long-term growth opportunities across ASEAN. He said that looking to the future, CIMB remains cautiously optimistic. While our direct exposure to West Asia remains limited, we continue to assess the potential for second-tier impacts on the broader macroeconomic and operating environment. “We continue to see resilient asset and loan growth, supported by strong planning, alongside stable customer franchise revenue across our key markets,” he added. -- BERNAMA

KUALA LUMPUR: CIMB Group Holdings Bhd’s net profit for the first quarter ended March 31, 2026 (Q1 2026) declined 2.9 percent to RM1.91 billion from RM1.97 billion in the same period last year. According to the group, the net profit translated into a return on equity (ROE) of 11.0 percent and earnings per share of […]

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