CIMB Group Holdings Berhad Integrated Annual Report 2025: Key Highlights and Investor Insights

Record Financial Performance and Robust Growth Trajectory

CIMB Group Holdings Berhad delivered a record net profit of RM7.9 billion for FY2025, cementing its position as one of the top performers among regional peers. The Group reported a consistent uplift in financial metrics, with Return on Equity (ROE) reaching 11.3% and operating income at RM22.5 billion. Notably, deposits from customers rose to RM524.4 billion, and total assets expanded to RM778.7 billion.

• Gross Loans: RM452.9 billion
• CET1 Ratio: 14.3% (slight decrease from 14.6% in 2024, but remains strong)
• Dividend per Share: 47.1 sen
• Cost-to-Income Ratio: 47.3%

This strong showing comes against a backdrop of macroeconomic volatility, persistent rate cuts, and FX headwinds, particularly in Indonesia and Thailand, and illustrates CIMB’s disciplined approach to risk and capital management.

Forward30 Strategy: Ambitious Six-Year Plan Anchored in Purpose

The Group launched Forward30, a new six-year strategic roadmap (2025–2030), aiming to position CIMB as the top-of-mind ASEAN bank by 2030. The plan is built on four growth levers (“4Cs”):

1. Capital: Reallocate and optimise resources
2. Cash: Build deposit franchise
3. Cross-sell: Deepen customer relationships and increase returns
4. Capabilities: Drive simplicity, efficiency, and digital transformation (“Simpler, Better, Faster”)

Forward30 targets a sustainable ROE of 12%–13% by 2027 and aims for CIMB to compete consistently in the top quartile of regional peers by 2030. These targets are not cyclical but structural and are intended to be resilient through economic volatility.

Strategic Capital and Shareholder Returns

In a move that could be price-sensitive for shareholders, CIMB announced the first multi-year capital return programme in Malaysia—up to RM2 billion by 2027. The Group emphasises returning excess capital to shareholders if not required for growth, reflecting a commitment to responsible capital management and value creation.

• Dividend consistency and capital return are likely to support share price stability and potentially re-rate the stock.

Islamic Finance as a Core Growth Engine

Islamic finance is a central pillar, with over half of Malaysian business being Shariah-compliant. All auto and ASB financing are now Shariah-compliant, and strong growth in Term Investment Account (TIA-i) deposits demonstrates rising market acceptance of profit-sharing structures. This positions CIMB at the forefront of responsible and inclusive banking.

Sustainability Leadership and ESG Credentials

CIMB significantly upgraded its sustainability ambitions in 2025:

• Sustainable finance target increased to RM300 billion by 2030 (previously RM100 billion, which was achieved ahead of schedule).
• RM39.8 billion in Green, Social, Sustainable Impact Products and Services (GSSIPS) mobilised in 2025.
• First Malaysian bank to publish a TNFD-aligned Nature and Biodiversity Report, addressing nature-related risks in supply chains and asset values.
• MSCI ESG Rating upgraded to AAA (from AA previously).
• Ranked #1 globally in the World Benchmarking Alliance Financial System Benchmark 2025.
• 88th percentile in the S&P Global Corporate Sustainability Assessment.
• Earned first CDP A-List recognition in the Supplier Engagement Assessment.

These developments position CIMB as a clear ESG leader in the region, potentially attracting more sustainability-focused investors and lowering long-term risk premiums.

Technology and Digital Transformation

CIMB invested RM1.7 billion in technology in 2025, focusing on customer-facing platforms (TNG Digital, CIMB OCTO App, CIMB OCTO Biz) and modernising back-end infrastructure. The Group is embedding AI and automation across the enterprise, strengthening both operational resilience and customer experience.

• 99.95% and 99.97% uptime for Retail and Non-Retail Digital Banking Platforms.
• 10.6 million digital users (MY & ID Clicks/OCTO users).
• 30 processes simplified/automated via SBF Lab, with RM600 million in value from data and AI initiatives.

The Group is also prioritising readiness for quantum-safe encryption and real-time risk monitoring, signalling advanced digital risk management.

Resilience in Risk Management and Governance

CIMB’s Enterprise-Wide Risk Management Framework ensures robust oversight of credit, market, liquidity, operational, technology, geopolitical, and sustainability risks. The Group maintains strong asset quality (gross impaired loans ratio: 1.7%, allowance coverage: 103.2%) and high CET1 capital (14.3%).

Key risk trends for 2026 include:

• Operational and technology risks are expected to increase, especially with AI/quantum threats and ecosystem interdependencies.
• Liquidity, market, and credit risks remain stable but require vigilant monitoring due to external headwinds.
• Sustainability risks (climate, nature, human rights, greenwashing) remain material but are mitigated by ongoing decarbonisation and risk intelligence initiatives.

Commitment to Human Capital and Inclusion

CIMB is committed to workforce development, inclusivity, and well-being:

• All permanent employees in Malaysia now earn above the living wage.
• Over RM100 million invested in employee training and development in 2025.
• 40% female representation in senior leadership.
• 2.2 million training hours delivered in 2025.

The Group is also advancing financial inclusion, with RM6.5 billion in financing to low-income families and RM5.4 billion to small and micro enterprises across ASEAN.

Price-Sensitive and Shareholder-Relevant Developments

• Multi-year capital return programme of up to RM2 billion by 2027—directly supportive of share value.
• Significant uplift in ESG credentials—may drive re-rating by global investors and index inclusion.
• Tripling of sustainable finance mobilisation target to RM300 billion by 2030—signals future growth pipeline and relevance in regional transition financing.
• Ongoing technology investments and operational resilience initiatives—future-proofs the Group and enhances competitive positioning.
• Industry-leading digital transformation and inclusion agenda—positions CIMB for continued market share gains.

Conclusion

CIMB’s 2025 Integrated Annual Report signals a bank in transformation—delivering record financials, scaling its sustainability ambitions, returning capital to shareholders, and investing aggressively in technology and talent development. The Group’s Forward30 strategy provides a clear, purpose-driven growth roadmap to 2030, with disciplined execution across business, risk, and ESG domains. These developments are likely to be price-moving and warrant close investor attention.

Disclaimer: This article is prepared for informational purposes only and does not constitute investment advice or a recommendation to buy or sell securities. Investors are advised to exercise their own judgement and seek professional advice before making any investment decisions. The information herein is based on the CIMB Group Holdings Berhad Integrated Annual Report 2025 and other public disclosures as at the date of publication. Actual results and future performance may differ materially due to risks and uncertainties.

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