Kuala lumpur: CIMB Group Holdings Bhd reported a 2.9 per cent decrease in net profit for the first quarter ended March 31, 2026, with earnings amounting to RM1.91 billion compared to RM1.97 billion in the same period last year.
According to BERNAMA News Agency, the group's net profit translated into a return on equity (ROE) of 11.0 per cent and earnings per share of 17.8 sen. The performance, despite facing foreign exchange and geopolitical challenges, was supported by the disciplined execution of its Forward30 strategy, as stated in a filing with Bursa Malaysia.
The group's revenue also saw a decrease of 1.6 per cent, totaling RM5.41 billion compared to RM5.49 billion previously. However, there was an encouraging 11.9 per cent quarter-on-quarter increase in non-interest income to RM1.7 billion, driven by stronger trading and foreign exchange income. This increase helped offset a five per cent decline in net interest income to RM3.7 billion, attributed to a two-basis-point compression in the group's net interest margin, although the impact was partially mitigated by asset growth.
CIMB Group observed signs of net interest margin compression easing, with an expansion in country-level margins by one basis point in Malaysia, 12 basis points in Singapore, and five basis points in Thailand. The group's total assets and gross loans saw marginal growth, and its cash-led strategy continued to gain traction, reflected in the expansion of CASA balances, increasing the ratio to 43.3 per cent in March 2026 from 42.7 per cent in December 2025.
Operating expenses decreased by 5.5 per cent quarter-on-quarter, improving the cost-to-income ratio to 47.2 per cent from 49.9 per cent. Investments in technology, data, and artificial intelligence remained within the target range for technology cost-to-income ratio, while asset quality remained stable with a gross impaired loan ratio at 1.7 per cent, indicating disciplined risk management.
The group's capital and liquidity positions remained robust, with a Common Equity Tier 1 ratio at 14.3 per cent, ensuring capacity to absorb potential market challenges and support future growth. Looking ahead, Group CEO Novan Amirudin expressed cautious optimism, highlighting ongoing investments in digital and regional capabilities to strengthen the franchise and capture growth opportunities across ASEAN, while monitoring macroeconomic impacts from West Asia.