KUALA LUMPUR (May 26): CIMB Group Holdings Bhd (KL:CIMB) posted a slightly lower net profit of RM1.916 billion in the first quarter, compared with RM1.973 billion a year earlier, as higher non-interest income was not enough to offset lower net interest income for the period ended March 31, 2026.

The group’s performance translated into a return on equity of 11.0% and earnings per share of 17.8 sen.

By business segment, consumer banking profit fell 23.0% year-on-year to RM605.4 million due to higher provisions and lower margins, while commercial banking profit rose 38.2% to RM604.2 million on stronger recoveries. Wholesale banking profit declined 10.0% to RM931.25 million due to lower one-off income, but digital assets and group funding increased 11.1% to RM410.08 million, driven by stronger performance from TNG Digital.

Quarter-on-quarter, operating income stayed steady at RM5.4 billion. Non-interest income rose 11.9% on stronger trading and forex gains, offsetting a 5.0% decline in net interest income due to a two-basis-point margin compression. 

No dividend was declared for the quarter under review.

However, the group, in a statement, said there were early signs of stabilisation in net interest margins across Malaysia, which saw a one-basis-point increase; Singapore (up 12 basis points); and Thailand (up five basis points).

The group’s loan and asset base grew modestly, while its current account and savings account (CASA) ratio improved to 43.3%. Asset quality remained stable at 1.7% gross impaired loans, and capital strength stayed solid with a Common Equity Tier 1 (CET1) ratio of 14.3%.

CIMB also saw early benefits from its Forward30 strategy, including tighter capital management, a RM2 billion capital return plan, and the divestment of CIMB Thai’s auto financing business. The group continued to reduce funding costs, cutting cost of funds by seven basis points, while fee income rose 4% and treasury sales rose 1% quarter-on-quarter on stronger cross-selling and regional growth initiatives.

“We are encouraged by the resilience of our performance and the early signs of NIM (net interest margin) stabilisation, supported by disciplined balance sheet management and sustained customer activity across our core markets. As Forward30 gains traction, we remain focused on being disciplined with capital, strengthening our funding franchise and making the organisation simpler, better and faster to deliver sustainable long-term returns,” CIMB group chief executive officer Novan Amirudin said in a statement.

He said that looking ahead, CIMB is cautiously optimistic. Although its direct exposure to West Asia is limited, it is monitoring possible indirect effects on the wider economic and business environment.

At 3pm, CIMB’s share price was down 0.26% or two sen at RM7.71, valuing the group at RM82.39 billion.