[SINGAPORE] CIMB’s net profit for the third quarter ended Sep 30 rose 2.3 per cent to RM2.08 billion (S$653.5 million) from RM2.03 billion in the year-ago period, the company said on Friday (Nov 28).
Operating income in Q3 grew 3.6 per cent to RM5.9 billion from RM5.7 billion, buoyed by higher non-interest income from robust trading and forex income, the bank noted.
Non-interest income for the group in Q3 FY2025 rose 17.4 per cent to RM2.1 billion, from RM1.8 billion in the same period a year prior, on higher trading income, fees and non-performing loans recovery.
Net interest income dipped 2.8 per cent to RM3.8 billion, from RM3.9 billion, amid a series of rate cuts in Malaysia, Indonesia, Singapore and Thailand.
Net interest margin (NIM) fell to 2.08 per cent, from 2.23 per cent in Q3 FY2024.
The bank said: “The group’s net interest margin was resilient at 2.08 per cent, driven by strategic repricing and proactive capital management from previous quarters, which mitigated the impact of persistent rate cuts.”
On a constant currency basis, deposits rose 9.1 per cent year on year to RM518.1 billion as at Sep 30, CIMB said.
This was due to the group’s Forward30 cash strategy, which cushioned NIM compression this year as a result of persistent rate cuts. The strategy involves reallocating and optimising capital and resources, increasing returns and building stronger capabilities.
The bank’s gross impaired loans ratio stood at 1.9 per cent in Q3 FY2025, down from 2.3 per cent in the previous corresponding period. Allowance coverage rose to 102.8 per cent, from 102.6 per cent in Q3 FY2024.
Gross loans rose 3.3 per cent year on year to RM448.2 billion from RM452.2 billion. Assets grew 5.1 per cent on the year to RM778.5 billion, from RM755.1 billion previously.
9M performance
For the nine-month period ended Sep 30, net profit inched up 0.2 per cent to RM5.94 billion, from RM5.93 billion in the corresponding period last year.
Profit before tax in the bank’s Islamic banking business rose 11.4 per cent year on year to RM1.99 billion in the nine-month period on revenue growth.
CIMB Islamic’s financing rose 5.7 per cent year on year to RM160.5 million as at September 2025.
Profit before tax for the bank’s business in Singapore fell 10.1 per cent to RM1.03 billion amid NIM pressure, CIMB said. NIM for the city-state for the nine-month period declined to 1.27 per cent, from 1.41 per cent in the year-ago period.
The bank announced it would be returning up to RM2 billion of capital to shareholders by end-2027, through special dividends or share buybacks subject to market conditions and regulatory approvals. It declared a special dividend of RM0.07 per share, which will be disbursed on Dec 24.
Novan Amirudin, group chief executive officer of CIMB Group, said the capital returns reflects the group’s confidence in its long-term performance trajectory.
“As we head into the final quarter of 2025, we remain optimistic in closing the year on a strong footing and meeting all our targets. Our diversified portfolio and disciplined execution will continue to ensure we remain resilient despite the macroeconomic headwinds and challenges.
“While it may take some time for the dust to settle with the new world order, we expect net interest margins to stabilise, and we will continue investing for long-term growth.”
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