CIMB 2Q Net Profit Rises To RM1.94 Bln, Declares 19.65 Sen Dividend

KUALA LUMPUR, Aug 28 (Bernama) -- CIMB Group Holdings Bhd’s net profit rose to RM1.94 billion in the second quarter ended June 30, 2026 (2Q 2026) compared to RM1.89 billion in 2Q 2026, supported by broad-based performance across all businesses.

However, revenue decreased to RM5.56 billion during the quarter from RM5.60 billion previously. 

For the first half ended June 30, 2026 (1H 2026), CIMB declared an all-cash first interim dividend of 19.65 sen per share, based on a consistent payout ratio of 55 per cent, translating to a total dividend payout of RM2.1 billion.

In a Bursa Malaysia filing, the group said that it delivered an annualised return on average equity (ROE) of 11.2 per cent, an improvement of 20 basis points quarter-on-quarter (q-o-q), while earnings per share (EPS) stood at 17.9 sen for the quarter.

“Operating income grew 2.8 per cent q-o-q to RM5.56 billion, with growth in both net interest income (NII) and non-interest income (NOII).

“NOII increased 6.0 per cent q-o-q to RM1.83 billion, driven by higher franchise fees and sustained client sales momentum.

“NII rose 1.3 per cent q-o-q to RM3.73 billion, underpinned by assets and loans growth of 2.2 per cent and 1.1 per cent, respectively, on a constant currency basis, offsetting the moderate net interest margin (NIM) contraction,” it said. 

The group expects NIM pressures to progressively ease, supported by loan repricing in Indonesia and continued growth in lower-cost deposits across its key markets.

On a constant currency basis, total deposits grew 2.5 per cent q-o-q, funding the group’s asset growth.

CIMB said operating expenses declined 1.6 per cent q-o-q, contributing to a 200 basis points improvement in cost-to-income ratio (CIR), which rose to 45.2 per cent for the quarter.

“At the same time, the group continued to invest in technology, data and artificial intelligence (AI) capabilities as key enablers of long-term growth, efficiency and customer experience improvements.

“Asset quality remains broadly stable, with gross impaired loan (GIL) ratio recording an all-time low of 1.6 per cent as at June 2026,” it added. 

For 1H 2026, CIMB’s net profit eased to RM3.85 billion from RM3.86 billion a year earlier, while revenue declined to RM10.97 billion from RM11.10 billion previously.

On its Forward30 progress, the group said it continues to prioritise strategic cross-border corridors through investments, payments and affluent connectivity initiatives.

This includes the Johor-Singapore Special Economic Zone, the ASEAN Financial Passport, China-ASEAN partnership and the establishment of an ASEAN Corporate Hub in Singapore. 

CIMB launched its six-year Forward30 strategic plan on March 5, 2025, aimed at driving growth, strengthening its business and supporting customers and society.

The plan will guide CIMB’s efforts to compete and grow in the market by leveraging its strong ASEAN network, making better use of its resources and delivering sustainable financial performance and long-term value to shareholders.

At the same time, the group continues to reallocate capital away from underperforming businesses and double down on its differentiated digital proposition at scale, by combining the strengths of its universal bank and TNG Group, leveraging each other’s platforms.

TNG Group continued to outperform in 1H 2026, with total profit growing more than 100 per cent year-on-year.

CIMB Group chief executive officer Novan Amirudin said its Forward30 execution momentum remains firmly on track.

“As we enter the second half of the year, our focus remains on sustaining strong asset and loan growth, underpinned by a healthy loan pipeline, alongside ongoing operational efficiencies and stronger execution across our growth engines.

“We will also maintain disciplined capital allocation as demonstrated through our exit in CIMB Thailand’s auto business, while doubling down on our unique digital proposition at scale through the combined strengths of our universal bank and TNG Group,” he said. 

Separately, CIMB announced that its subsidiary, CIMB Thai Bank PCL, will have its shares delisted from The Stock Exchange of Thailand (SET), effective Sept 12, 2026.

CIMB Thai's shares will remain available for trading for seven business days, from Sept 3-11, 2026, prior to the delisting.

“The delisting will have no material impact on CIMB Thai’s customers, operations, financial strength or regulatory standing.

“CIMB Thai remains a core subsidiary of the group and will continue its banking operations as usual while advancing customers and society,” it said.

-- BERNAMA