MARC Ratings has affirmed its financial institution ratings on CIMB Bank Berhad at AAA/MARC-1. The rating agency has concurrently affirmed its AA+ rating on the bank’s existing RM10.0 billion Basel III–compliant Tier 2 Subordinated Debt Programme. The ratings outlook is stable.
CIMB Bank’s ratings reflect its systemic importance to the domestic banking system, underpinned by an established franchise and strong market shares of 16.7% in loans and 16.4% in deposits as at end-2025. It is the core banking subsidiary of CIMB Group Holdings Berhad, which is designated as a domestic systemically important bank (D-SIB) by Bank Negara Malaysia. CIMB Bank maintains a leading position in Malaysia’s banking sector and ranks as the second-largest domestic bank, with total assets of RM683.7 billion as at end-2025.
CIMB Bank’s loan portfolio remains predominantly domestic, with Malaysia accounting for 72.6% of total loans, followed by Singapore (11.9%) and Thailand (8.0%). Loan growth slowed to 1.6% in 2025, reflecting more selective wholesale lending to preserve margins and asset quality, alongside softer demand in Thailand.
Asset quality strengthened in 2025, reflected in a lower gross impaired loans ratio of 1.30% (2024: 1.60%). Despite external headwinds from the Middle East conflict, the diversified loan portfolio is expected to remain resilient, supported by its retail-heavy composition (58.8%) and moderate SME exposure (11.8%). Loan loss coverage was robust at 155.3%, including regulatory reserves, providing adequate buffers against potential credit deterioration.
The bank maintained a stable funding profile in 2025, supported by its funding-led strategy that aligns loan growth with deposit expansion. The stable funding ratio stood at 83.5%, while a strong deposit franchise was reflected in a current and savings account (CASA) ratio of 41.6%. While funding costs continue to face pressure from deposit competition and campaign-driven pricing, the focus on low-cost CASA deposits is expected to provide some mitigation.
CIMB Bank’s earnings improved in 2025, with pre-tax profit rising 5.1% to RM8.3 billion, driven by stronger operating income and lower provisioning. Pre-tax return-on-assets remained stable at 1.25% (2024: 1.24%), while net interest margin declined slightly to 1.87% (2024: 1.90%) following the July 2025 policy rate cut, partly offset by easing funding cost pressures amid softer year-end deposit competition. Capitalisation remained strong as at end-2025, with Basel III ratios at 14.6% (Common Equity Tier 1), 15.0% (Tier 1) and 18.6% (total capital), comfortably above regulatory requirements.