MARC Ratings has affirmed its AA+/MARC-1 corporate credit ratings on CIMB Group Holdings Berhad (CIMB Group) and the AA rating on the group’s RM10.0 billion Basel III–compliant Tier 2 Subordinated Debt Programme. The outlook on all ratings is stable.
CIMB Group is a non-operating financial holding company overseeing one of Malaysia’s largest banking groups, with total assets of RM778.7 billion as at end-2025. Its credit profile is underpinned by key operating subsidiaries — CIMB Bank Berhad, CIMB Islamic Bank Berhad, and PT Bank CIMB Niaga Tbk. CIMB Bank is the principal entity, contributing 87.8% of consolidated assets and the bulk of dividend upstreaming. The group’s designation as a domestic systemically important bank (D-SIB) by Bank Negara Malaysia underscores its importance to the financial system.
The group’s key markets are Malaysia, Indonesia, Singapore and Thailand, with Malaysia remaining the core market, contributing 63% of total gross loans. Loan growth moderated to 0.2% in 2025 (2024: 2.6%; 2023: 8.3%), reflecting a more selective lending stance and weaker macroeconomic conditions in overseas markets. The strengthening ringgit further weighed on growth, particularly in Indonesia and Thailand. Nonetheless, Malaysian operations remained resilient, recording 4.2% growth, supported by the consumer and commercial segments.
Asset quality improved steadily over the past five years, with the gross impaired loans ratio declining to 1.7% in 2025 (2024: 2.1%), reflecting broad-based improvement across operating markets. Loan loss coverage increased to 134.0% (inclusive of regulatory reserves), notwithstanding a reduction in management overlays to RM984.0 million (2024: RM1.2 billion). Despite external headwinds from the Middle East conflict, asset quality is expected to remain resilient, supported by a predominantly retail loan mix (55.4%) and moderate SME exposure (13.2%).
The group reported higher pre-tax profit of RM10.7 billion in 2025 (2024: RM10.4 billion), underpinned by stable operating income. Pre-tax return-on-assets remained broadly steady at 1.41%, despite a slight moderation in net interest margin to 2.12% (2024: 2.19%). Cost efficiency was maintained, with a cost-to-income ratio of 48.1% (2024: 47.6%).
CIMB Group’s capitalisation remained strong, with key ratios well above regulatory requirements, including the 1.0% Common Equity Tier 1 surcharge associated with its D-SIB designation. The group’s funding profile is sound, supported by a stable funding ratio of 83.8% and a healthy current and savings account (CASA) ratio of 46.2% in 2025. While deposit competition is expected to keep funding costs elevated, continued emphasis on CASA growth should help mitigate cost pressures.
At the holding company level, leverage remained broadly stable, with CIMB Group’s debt-to-equity ratio at 0.52x in 2025 (2024: 0.49x). Basel III–compliant subordinated debt issuances were largely channelled into similar capital instruments issued by its banking subsidiaries. Debt-servicing capacity was supported by upstreamed dividends of RM4.8 billion in 2025. Capital and liquidity across key subsidiaries remained comfortably above regulatory requirements.