MARC Ratings has affirmed CIMB Islamic Bank Berhad’s (CIMB Islamic) financial institution (FI) ratings at AAA/MARC-1 with a stable outlook. Concurrently, the rating agency has affirmed its ratings on CIMB Islamic’s sukuk programmes as follows:
- RM10.0 billion Senior Sukuk Wakalah Programme (Sukuk Wakalah) at AAAIS/Stable
- RM5.0 billion Tier 2 Junior Sukuk Programme at AA+IS/Stable
CIMB Islamic’s FI ratings are equalised with those of its parent, CIMB Bank Berhad (AAA/MARC-1/Stable), reflecting its role as the group’s primary Islamic financing arm. The bank benefits from strong operational integration with CIMB Bank’s platform, including access to its branch network and resources. CIMB Islamic accounted for 32.1% of CIMB Group’s total financing as at end-2025.
CIMB Islamic remains the second-largest full-fledged Islamic bank in Malaysia, with total assets of RM188.9 billion as of end-2025, representing a 14.9% share of domestic Islamic banking assets. Financing growth accelerated to 9.0% (2024: 8.1%), surpassing the industry average of 7.9%, underpinned by continued expansion in both the retail and corporate segments. Asset quality improved further, with the gross impaired financing ratio declining to 1.12%, compared with the Islamic banking industry average of 1.36%.
Amid Middle East–related headwinds, the bank’s portfolio is expected to remain resilient, supported by its largely retail mix (67.8%) and moderate SME exposure (17.3%). Financing loss coverage stands above the Islamic banking industry average at 142.4% (including regulatory reserves), providing a buffer against potential asset quality pressures from energy price volatility, supply chain disruptions and softer business sentiment.
Capitalisation improved, with Common Equity Tier 1, Tier 1 and total capital ratios at 14.9%, 15.4% and 18.1%, remaining above regulatory thresholds and industry averages. Funding remains stable, supported by a higher current and savings account (CASA) mix of 30.2% (2024: 28.7%), slightly exceeding the industry average of 28.9%. Liquidity metrics are strong, with the liquidity coverage ratio and net stable funding ratio at 168.8% and 105.4% as at end-2025, well above minimum requirements.
Earnings strengthened in 2025, with pre-tax profit rising 15.4% y-o-y to RM1.9 billion (2024: RM1.6 billion), supported by continued financing portfolio expansion and a strong recurring income base, with net financing income exceeding 80% of total earnings. Profitability improved, reflected in higher pre-tax return-on-assets of 1.04% as earnings growth outpaced asset expansion, alongside a lower cost-to-income ratio of 39.1%.