CIMB Group Holdings Bhd reported a net profit of RM3.86 billion for the first half of 2025 (1H25), broadly in line with market expectations, representing 50% of Maybank Investment Bank’s full-year forecast and 49% of consensus estimates.
For the second quarter ended June 2025, the group booked a net profit of RM1.89 billion, down 4% year-on-year (YoY) and quarter-on-quarter (QoQ). Despite subdued loan growth, earnings were supported by stable net interest margins (NIM) and lower provisions.
In view of the decent profit, CEO Novan Amirudin said the board declared an interim dividend per share (DPS) of 19.8 sen, translating into a payout ratio of 55.5%. This compares with 20 sen (excluding a 7 sen special DPS) in the first half of 2024.
Loan Growth Lags, NIM Guidance Revised
Loan growth remained sluggish, rising just 1% YoY in 2Q25 (+3.6% on a constant currency basis), trailing management’s FY25 target of 5–7%. Reflecting this, CIMB revised its NIM guidance to a compression of 5–8 basis points (bps), from up to 5bps earlier.
Other FY25 targets, however, remain intact, including a cost-to-income ratio (CIR) below 46.7% (1H25: 46.25%), credit cost guidance of 25–35bps (1H25: 29bps), and return on equity (ROE) of 11–11.5% (1H25: 11.1%).
Profit Forecast Unchanged
Maybank Investment Bank has kept its FY25 net profit forecast unchanged, with projected ROE at 10.9% (slightly below management’s target). Adjustments were made to reflect slower loan growth (3.5% vs. 4.5% previously), wider NIM compression (-7bps vs. -5bps), a marginally lower CIR (47.3% vs. 47.5%), and a slight tweak to credit cost assumptions (33bps vs. 36bps).
Net profit forecasts for FY26 and FY27 were adjusted marginally by +1% and -1% respectively. CIMB’s dividend payout policy of 40–60% remains unchanged, with Maybank projecting a 55% payout for FY25.
Maybank has maintained its HOLD call on CIMB, with an unchanged target price of RM7.60 based on 1.1x FY25E PBV. Analysts highlighted CIMB’s relatively higher exposure to regional volatility compared to its more domestic-centric peers, as overseas operations contributed about 40% of group pretax profit in 1H25.
