CIMB's Q1 net profit rises to RM1.97bil on RM5.5bil revenue
KUALA LUMPUR: CIMB Group Holdings Bhd recorded a higher net profit of RM1.97 billion for the first quarter ended March 31, 2025, up from RM1.94 billion in the same period last year, supported by stronger net interest income (NII).
Its revenue slipped slightly to RM5.5 billion from RM5.6 billion in the same period last year, mainly due to compressed net interest margins (NIM). However, this was cushioned by growth in assets.
CIMB's NII saw a slight increase both quarter-on-quarter (QoQ) and year-on-year (YoY) to RM3.82 billion.
Meanwhile, its non-interest income (NOII) rose 11.1 per cent QoQ, supported by an 18.9 per cent jump in treasury client sales and a 12.6 per cent rise in fee and commission income.
In a filing with Bursa Malaysia, the banking group said it remains committed to implementing its Forward30 strategic plan, focusing on customer-centric initiatives, enhancing operational efficiency, and promoting sustainable banking practices.
"During the quarter, CIMB transitioned its leadership in Thailand and Cambodia, and have included Thailand, Cambodia and Singapore as part of the group's growth markets to sharpen strategic focus and drive growth in priority segments.
"In the medium term, CIMB believes the evolving global landscape will continue to present new opportunities, particularly in intra-Asean trade, where the Group's integrated Asean franchise is poised to seize growth prospects," it added.
CIMB stated that it is well-equipped to manage ongoing market volatility, thanks to its limited exposure to trade-related financing and clients heavily reliant on exports to the US.
Group chief executive officer Novan Amirudin said CIMB's first-quarter results reflect the resilience of its diversified Asean portfolio, with solid performance across various income streams, especially client franchise income, which has been steadily growing since 2022.
"We have maintained healthy asset quality and exercised disciplined cost controls to enhance resilience amid a dynamic operating environment.
"In an increasingly uncertain market condition, we remain committed to being a reliable and trusted partner for our customers.
Novan said the group's strong focus on prudent risk management and operational discipline has positioned it well to support its clients, maintain stability and create value for shareholders.
"With disciplined execution of our Forward30 strategic plan, we are confident in our ability to deliver both short- and long-term targets, backed by the strength of our franchise.
"We will remain disciplined and proactive with capital optimisation, including returning excess capital to our shareholders as we have demonstrated over the last two years," he added.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Sun
4 hours ago
- The Sun
U Mobile appoints CIMB as coordinator, lead arranger of up to RM4b financing for 5G rollout
PETALING JAYA: U Mobile has appointed CIMB as the company's loan coordinator and mandated lead arranger to facilitate and arrange financing of up to RM4 billion to support the nationwide deployment of its cutting-edge 5G network infrastructure. As part of the arrangement, CIMB intends to participate in the financing of at least RM1.5 billion with the balance to be syndicated among other financial institutions. The appointment was formalised at a signing ceremony in Kuala Lumpur on Friday. The financing will fund U Mobile's capital expenditure (capex) to accelerate the rollout of its Next Gen 5G network, which aims to achieve 80% coverage of populated areas by July 2026. The agreement was signed by U Mobile CEO Wong Heang Tuck and CIMB Group CEO of wholesale banking Chu Kok Wei, witnessed by U Mobile chief financial officer Sandy Tsang and CIMB head of corporate and public sector coverage Denise Wong. 'U Mobile is pleased to deepen our partnership with CIMB through this significant arrangement. CIMB shares our commitment to driving Malaysia's digital economy forward through connectivity and innovation,' Heang Tuck said in a statement. 'Partnering with a strong financial institution like CIMB demonstrates our ability in executing our capex programme efficiently. Their confidence in our financial discipline and growth trajectory reinforces our ability to deliver an enterprise-grade 5G network that is fast, scalable, and impactful for both businesses and consumers,' he added. Chu said, 'CIMB is pleased to partner with U Mobile on this strategic initiative to accelerate 5G coverage across Malaysia. This next-generation network will be a key catalyst not only in boosting social connectivity and economic inclusion across Malaysia, but positions Malaysia as a key enabler of Asean's digital economy. 'As a key financial institution in Malaysia and the region, we are grateful for the opportunity to continue leveraging our financial expertise, entrenched experience and strong business networks to spur U Mobile's growth in its national ambitions and Malaysia's broader digital transformation.' This milestone underscores U Mobile's continued momentum as the nation's newest 5G network provider, spurring digital connectivity and innovation, solidifying Malaysia's digital ambitions.
Malaysia Sun
6 hours ago
- Malaysia Sun
Malaysian PM calls for strategic connectivity, open trade during Shangri-La Dialogue
SINGAPORE, June 1 (Xinhua) -- Malaysian Prime Minister Anwar Ibrahim said here on Saturday that the Association of Southeast Asian Nations (ASEAN) is dedicated to promoting open and fair trade, while recognizing the potential risks associated with global fragmentation. In a special address during the 22nd edition of the Shangri-La Dialogue, Asia's premier defense and security summit, Anwar said that preserving ASEAN's autonomy is "not about resisting others," but "about strengthening ourselves." That same spirit shaped the ASEAN leaders' statement on global economic and trade uncertainty during their summit earlier this week in Kuala Lumpur, he said, adding that "we warned of the dangers of unilateral actions, retaliatory tariffs and the growing risk of global fragmentation." "We affirmed ASEAN's commitment to an open, predictable and rules-based trading system," said the prime minister, adding, "open markets create the kind of mutual exposure between nations that encourages caution, not confrontation." Economic openness is a source of equilibrium, both between nations and within them, to deal with pressing issues that affect the people, such as poverty, social inequities, or even digital divide, said Anwar. This year's Shangri-La Dialogue, which runs from Friday through Sunday, drew representatives from 47 countries, including 40 ministerial-level delegates, 20 chief of defense forces-level delegates, over 20 senior defense officials, and prominent academics, according to the Singapore Ministry of Defense.
New Straits Times
8 hours ago
- New Straits Times
Asean should shift to strategic firmness to realise 'centrality' concept
ON May 26, 2025, Malaysia's Prime Minister Datuk Seri Anwar Ibrahim, in his role as Asean Chair, announced that he had reached out to US President Donald Trump to propose a summit at the bloc level between the United States and Asean ( Association of Southeast Asian Nations). This initiative comes in response to Washington's recent implementation of a 15 per cent tariff on electronics and a 10 per cent levy on agricultural exports from Southeast Asia, measures that are expected to reduce Asean's collective gross domestic product (GDP) growth by up to 0.7 percentage points in 2025. Such unilateral restrictions challenge the principles of multilateralism and undermine Asean's central role in shaping economic, regional, and strategic agendas. This essay argues that as the 46th Asean Summit concluded, the bloc should abandon a deferential stance and instead leverage its economic strength, institutional unity, and commitment to a rules-based order to negotiate with strategic firmness and mutual respect. Asean's foundational concept of "centrality" positions the bloc as a key forum for regional dialogue and crisis management. However, this centrality relies on the ability to influence outcomes. If member states allow internal divisions to hinder decisive action, Asean risks relinquishing authority to other actors, especially China, which has strengthened its regional influence through initiatives like the Belt and Road Initiative (BRI) and the Regional Comprehensive Economic Partnership (RCEP). To maintain its negotiating leverage, Asean should avoid a conciliatory approach that relies on piecemeal requests and lobbying for exemptions. Instead, it should adopt a unified stance that emphasises legal remedies, utilises the World Trade Organisation (WTO) dispute settlement, and highlights the disproportionate impact on small and medium-sized enterprises across member states. Confronting these challenges requires a two-pronged strategy. First, Asean must advocate for a formal Asean Special Summit, allowing all the heads of government to present synchronised data on tariff impacts, propose practical solutions such as tariff quotas and rates, and reaffirm their commitment to mutual market access. This approach leverages Asean's combined market of 680 million consumers and a total GDP of US$4 trillion to compel US recognition of the bloc as an indispensable partner. If Asean falters, it should authorise the appointment of a Secretariat in coordination with national trade ministries to file a consolidated complaint with the WTO. The bloc must accelerate market integration under the Asean Economic Community framework by reducing non-tariff barriers, harmonising standards, and promoting regional value in higher-value industries. Additionally, diversifying export markets through engagement with the European Union, India, and Japan will help mitigate dependence on the US market. Strengthening financial safety nets, such as the expanding Chiang Mai Multilateralisation Initiative and exploring Asean sovereign bond issuance, will bolster resilience against external shocks. By adopting these measures, Asean will demonstrate that centrality is not a passive status but an active choice to lead principled, secure engagement and shape its economic future. Integrating recommendations with concluding reflections, Asean's next steps must strategically combine assertiveness with pragmatic adaptation. This involves demanding a US Special Summit framed by data-driven analysis, invoking WTO mechanisms when necessary, and fostering deeper economic cooperation. Asean should focus on rolling back punitive tariffs while simultaneously deepening intra-regional integration, diversifying external partnerships, and reinforcing financial contingency arrangements. By doing so, the bloc can transform its centrality from mere aspiration into operational strength, safeguarding its regional relevance and advancing a stable, rules-based Indo-Pacific order.
