KUALA LUMPUR (May 5): CIMB Group Holdings Bhd (KL:CIMB) said it is selling its Thai unit’s automotive financing portfolio as part of its strategy to exit non-core businesses and reallocate capital for growth across its Asean franchise.

In a statement, CIMB said CIMB Thai Bank Public Company Ltd’s automotive financing portfolio will be sold to Bank of Ayudhya Public Company Ltd (Krungsri) at “a modest premium to adjusted net book value”.

Transaction details were not disclosed.

Krungsri is Thailand’s fifth-largest bank and is 76.9%-owned by MUFG Bank Ltd, a subsidiary of Mitsubishi UFJ Financial Group Inc.

“This transaction reflects disciplined execution of our Forward30 strategy as we continue sharpening our portfolio across Asean and exiting non-core businesses," said CIMB group chief executive officer Novan Amirudin.

CIMB, Malaysia’s second-largest bank by assets, said its 2026 financial guidance has already factored in the impact of the sale of the automotive financing portfolio and related one-off costs.

It said the sale marks a major step in CIMB Thai’s transformation programme, which includes operating model enhancements, cost optimisation and a shift towards higher-return segments such as wealth management and regional wholesale banking.

This is expected to lift CIMB Thai’s return on equity (ROE) to double-digit levels over the medium term, supported by a more focused franchise and optimised capital deployment, said the bank.

Novan said the move will strengthen CIMB Thai’s positioning for more sustainable profitability and growth. “The restructuring enhances CIMB Thai’s competitiveness and focus, while allowing the group to redeploy capital into priority growth areas that deliver stronger long-term shareholder returns,” he said.

Shares of CIMB climbed 20 sen or 2.6% to close at RM7.89 on Tuesday, giving the bank a market capitalisation of RM85.6 billion.