CIMB Group Holdings (CIMB) Q1 2025 earnings summary

Executive summary

• Achieved resilient Q1 2025 performance with net profit of RM2.0 billion, up 9.6% quarter-on-quarter and 1.9% year-on-year, and ROE at 11.4%.

• Maintained stable NIM at 2.16% despite regional rate cuts, supported by lower cost of funds.

• Asset, loan, and deposit growth of 5.1%, 4.4%, and 2.7% year-on-year in constant currency; CASA ratio improved to 43.8%.

• Non-interest income rose 11% quarter-on-quarter but declined year-on-year due to lower NPL sales and proprietary trading.

• Cost-to-income ratio steady at 46.9% with disciplined cost management and increased tech investment.

Financial highlights

• Net interest income grew marginally YoY; non-interest income up 11% QoQ but down 8.5% YoY.

• Cost-to-income ratio at 46.9%, reflecting cost discipline and ongoing technology investments.

• Credit cost improved to 26 bps; allowance coverage ratio at 102.4%; gross impaired loans ratio at 2.2%.

• CET1 ratio strong at 14.7%; LDR at 88.9%; CASA deposits grew 7.4% YoY.

• Fee and commission income up 6.9% YoY and 12.6% QoQ; treasury client sales up 5% YoY and 18.9% QoQ.

Outlook and guidance

• FY25 guidance: ROE 11.0–11.5%, loan growth 5–7%, CIR <46.7%, credit cost 25–35 bps, CET1 ≥14.0%.

• Margin guidance tilted to lower end: group and Malaysia stable to -5 bps, Singapore and Thailand around -10 bps, Niaga 3.9–4.2%.

• Focus on proactive asset-liability management and disciplined execution of Forward30 plan.

• Confident in achieving short- and long-term targets through franchise resilience.

• Updated credit cost guidance to 25–35 bps due to strong recoveries and portfolio health.