KUALA LUMPUR (Mar 5): CIMB Group Holdings Bhd (KL:CIMB) aims to build a leading deposit franchise to reduce the cost of funds by 10 to 20 basis points (bps) by 2030, as part of its newly unveiled six-year roadmap known as Forward30.

The plan comes after the completion of the Forward23+ strategy, during which CIMB improved its return on equity from 2.1% in 2020 to 11.2% in 2024, with an annualised total shareholder return of 34.6% from 2020 to 2024.

Also, by 2030, the group is looking to maintain a competitive position among regional banks, with aspirations to achieve the top quartile return on equity (ROE) among regional peers. Its ROE expanded 50 bps to 11.2% as at end-2024.

Other goals set under Forward30 are a current and savings account (CASA) ratio of 45%, a non-interest income (NOII) ratio of between 33% and 34%, and a cost-to-income (CIR) ratio in the low 40s%. As at end-2024, its CASA ratio stood at 43.1%, while the NOII ratio and CIR ratio came in at 31% and 46.7% respectively.

CIMB group CEO Novan Amirudin said in a statement on Wednesday that the Forward30 plan will guide the bank’s approach to competing in the market, focusing on optimising resources, improving efficiency and reinforcing its presence in the Asean region.

"Predicated on global megatrends such as geopolitical shifts, cyclical economic policies, as well as the rapid advancement of Gen AI, Forward30 ensures that the group remains nimble in navigating an increasingly complex operating environment while being focused on accelerating growth in areas we are winning, as well as keeping our customers at the heart of everything we do," he said.

Novan said the new strategy is built around four core levers: capital optimisation, deposit growth, cross-selling and enhanced service capabilities. Under the roadmap, he said CIMB will concentrate on building a stronger deposit base to lower funding costs, improving customer offerings and streamlining services to enhance productivity.

In addition, he noted that CIMB, Malaysia’s second-largest financial services provider by assets, remains committed to delivering returns to shareholders and creating long-term value for all stakeholders.

“With Forward30, the group aims to continue enhancing our position as the leading focused Asean bank, driving a meaningful and lasting impact for customers, employees and societies. We will actively pursue opportunities to reimagine our operating model [and] unlock new areas of growth while generating long-term sustainable value," he added.

The launch of Forward30 follows CIMB’s strong financial performance in 2024. The bank reported a record net profit of RM7.73 billion for the financial year ended Dec 31, 2024 (FY2024). Its net interest margin — a measure of profitability from interest charged on loans after paying returns on deposits — was up two bps to 2.17% from the previous year.

Net interest income went up 5.3% to RM15.40 billion on healthy loan growth, while non-interest income grew 8.1% to RM6.90 billion, driven by strong client franchise business and trading income.

CIMB also declared a second interim dividend of 20 sen per share, bringing total dividends for the year to an all-time high of 47 sen per share.

At market close on Wednesday, CIMB shares were down 20 sen or 2.5% at RM7.80, with a market capitalisation of RM83.71 billion.

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