KUALA LUMPUR (July 22): CIMB Group Holdings Bhd (KL:CIMB) may deliver weaker earnings in the second quarter from a year earlier amid net interest income drag, analysts said.

Net profit will likely come in slightly below consensus and the second-largest Malaysian banking group by assets will have to play catch-up in the second half, with CIMB pointing to its healthy loan pipeline, RHB Research said following a pre-close period analysts' briefing.

Net interest margin, which measures the difference between the interest earned on loans and the interest paid out to depositors, is also at risk from headwinds in Indonesia, the house flagged.

Net profit was slightly lower at RM1.916 billion in the first quarter, compared with RM1.973 billion in the same quarter last year, as higher non-interest income was not enough to offset lower net interest income.

Net interest margin, meanwhile, was currently closer to the lower end of 2.08%-2.13% guidance for this year after narrowing eight basis points to 2.13% in 2025.

Still, the consensus remained broadly positive on CIMB, with 16 ‘buy’, four ‘hold’ and no ‘sell’ recommendations, according to analysts tracked by Bloomberg. The average 12-month target price is RM8.94.

For MBSB Research, everything else at CIMB is well managed — the outlook on non-interest income is bright, operating expenditure is under control, the restructuring of its Thai operations is coming to an end, and loan growth remains healthy.

“Most attractive of all, there is a possibility that its remaining special dividends are frontloaded to 2026, which implies a pretty large payout,” the research house said, noting that dividend yields remain high, especially when bolstered by special dividends.