CIMB's Q1 net profit rises to RM1.97bil on RM5.5bil revenue
KUALA LUMPUR: CIMB Group Holdings Bhd recorded a higher net profit of RM1.97 billion for the first quarter ended March 31, 2025, up from RM1.94 billion in the same period last year, supported by stronger net interest income (NII).
Its revenue slipped slightly to RM5.5 billion from RM5.6 billion in the same period last year, mainly due to compressed net interest margins (NIM). However, this was cushioned by growth in assets.
CIMB's NII saw a slight increase both quarter-on-quarter (QoQ) and year-on-year (YoY) to RM3.82 billion.
Meanwhile, its non-interest income (NOII) rose 11.1 per cent QoQ, supported by an 18.9 per cent jump in treasury client sales and a 12.6 per cent rise in fee and commission income.
In a filing with Bursa Malaysia, the banking group said it remains committed to implementing its Forward30 strategic plan, focusing on customer-centric initiatives, enhancing operational efficiency, and promoting sustainable banking practices.
"During the quarter, CIMB transitioned its leadership in Thailand and Cambodia, and have included Thailand, Cambodia and Singapore as part of the group's growth markets to sharpen strategic focus and drive growth in priority segments.
"In the medium term, CIMB believes the evolving global landscape will continue to present new opportunities, particularly in intra-Asean trade, where the Group's integrated Asean franchise is poised to seize growth prospects," it added.
CIMB stated that it is well-equipped to manage ongoing market volatility, thanks to its limited exposure to trade-related financing and clients heavily reliant on exports to the US.
Group chief executive officer Novan Amirudin said CIMB's first-quarter results reflect the resilience of its diversified Asean portfolio, with solid performance across various income streams, especially client franchise income, which has been steadily growing since 2022.
"We have maintained healthy asset quality and exercised disciplined cost controls to enhance resilience amid a dynamic operating environment.
"In an increasingly uncertain market condition, we remain committed to being a reliable and trusted partner for our customers.
Novan said the group's strong focus on prudent risk management and operational discipline has positioned it well to support its clients, maintain stability and create value for shareholders.
"With disciplined execution of our Forward30 strategic plan, we are confident in our ability to deliver both short- and long-term targets, backed by the strength of our franchise.
"We will remain disciplined and proactive with capital optimisation, including returning excess capital to our shareholders as we have demonstrated over the last two years," he added.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Malay Mail
2 hours ago
- Malay Mail
Stagflation fears, US data to shape Bursa sentiment next week, say analysts
KUALA LUMPUR, June 21 — Bursa Malaysia is expected to remain cautious next week, tracking Wall Street's performance as markets digest signals from the United States (US) Federal Open Market Committee (FOMC), said an analyst. UOB Kay Hian Wealth Advisors Sdn Bhd's head of investment research Mohd Sedek Jantan noted that the US Federal Reserve's (Fed) projections, characterised by slower growth, elevated inflation, and a higher unemployment trajectory for 2025–2027—suggest a stagflationary undertone, which could weigh on risk sentiment. 'Growth-sensitive sectors may face headwinds as the policy outlook remains uncertain. The split in the FOMC's dot plot, with members divided between no interest rates cuts and two cuts by year-end, implies limited near-term easing and reduces the likelihood of a July cut,' he told Bernama. Mohd Sedek also pointed out that the benchmark index is hovering near the psychological threshold of 1,500 points, adding that a breach of this level could trigger opportunistic buying by institutional investors, especially as the index nears its immediate support at 1,490 points. 'While the FOMC's guidance has introduced caution, markets may find support at lower levels, where valuations become more compelling. Geopolitical-driven volatility is often short-lived, and we expect a moderation in risk sentiment as these concerns subside,' he said. Meanwhile, Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng market focus next week will shift to several key economic indicators, including the US quarterly gross domestic product and jobless claims. 'The FBM KLCI is currently priced at about 12 times the calendar year 2025 price-to-earnings ratio, notably below its long-term average of over 16 times, indicating potential for further appreciation. 'The subdued valuation may attract bargain hunters. For the week ahead, we expect the index to trade within the 1,500–1,530 points range,' Thong added. For the week just ended, Bursa Malaysia was mostly subdued as investors stayed on the sidelines due to ongoing concerns over the Middle East conflict and the anticipated implementation of reciprocal tariffs by US President Donald Trump. On a Friday-to-Friday basis, the barometer index dropped 15.37 points to 1,502.74 from 1,518.11 a week earlier. The FBM Emas Index fell 141.109 points to 11,228.99, the FBMT 100 Index was down 128.59 points to 11,015.45, and the FBM Emas Shariah Index declined 128.19 points to 11,201.34. The FBM 70 Index decreased 250.96 points to 16,117.75 and the FBM ACE Index shrank 86.34 points to 4,400.85. Across sectors, the Industrial Products and Services Index eased by 4.08 points to 147.27 and the Energy Index was 5.05 points lower at 735.71. The Plantation Index slid 0.40 of-a-point to 7,220.52, the Healthcare Index dipped 85.83 points to 1,691.89, and the Financial Services Index tumbled 179.87 points to 17,468.38. Turnover dropped to 13.72 billion units worth RM10.84 billion from 13.89 billion units valued at RM10.61 billion in the preceding week. The Main Market volume fell to 6.29 billion units valued at RM9.63 billion against 6.42 billion units worth RM9.47 billion previously. Warrants turnover expanded to 6.16 billion units worth RM845.61 million versus 5.97 billion units valued at RM687.92 million a week ago. The ACE Market volume slipped to 1.25 billion units valued at RM361.21 million compared with 1.50 billion units worth RM458.75 million in the preceding week. — Bernama
The Star
3 hours ago
- The Star
Cambodian DPM urges investors to maximise benefits from Regional Comprehensive Economic Partnership, bilateral free trade agreements
PHNOM PENH: (Bernama-Xinhua) Cambodian Permanent Deputy Prime Minister and Cabinet Minister Vongsey Vissoth (pic) on Friday (June 20) urged investors to reap maximum benefits from the Regional Comprehensive Economic Partnership (RCEP) agreement and bilateral free trade agreements (FTAs), Xinhua reported. Cambodia is a member of the RCEP agreement, which engages with 15 Asia-Pacific countries, and the kingdom also has bilateral FTAs with China, South Korea and the United Arab Emirates (UAE). Under these free trade pacts, Cambodian products have been exported to those countries with preferential tariffs. "I would like to urge investors to maximise the opportunities and benefits from the RCEP agreement and Cambodia's bilateral FTAs with China, South Korea, and the UAE," Vissoth said in a speech to hundreds of investors and business executives at a Cambodia-international investment promotion platform in Phnom Penh. He said these free trade pacts have played a crucial role in "diversifying markets for garment products to the Association of Southeast Asian Nations (Asean), East Asia, and other regions besides the United States and Europe." Entering into force in 2022, RCEP comprises 10 Asean member states of Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam, and their five trading partners, namely China, Japan, South Korea, Australia and New Zealand. Zheng Xianjiang, co-president of the Cambodia Confederation of Investors Association, said Cambodia is a "golden hub" for investment as the Phnom Penh-Sihanoukville Expressway, the Sihanoukville Special Economic Zone, and the international deep-sea port of Sihanoukville have provided convenience for trade exchanges between Cambodia and the rest of the world. Moreover, under the RCEP and the FTAs, trade between Cambodia and these countries has been conducted with no barriers, he said at the event. Zheng added that these trade pacts have created favourable trade and investment opportunities for investors in Cambodia. Cambodian Ministry of Commerce's Secretary of State and spokesperson Penn Sovicheat said the RCEP agreement and bilateral FTAs will help Cambodia realise its ambitious goals of becoming an upper-middle income country by 2030 and a high-income nation by 2050. "These free trade pacts have not only given a big boost to Cambodia's sustainable trade growth in the long run, but also become a magnet to attract more foreign direct investments to the kingdom," he told Xinhua. Kin Phea, director general of the International Relations Institute of Cambodia, a think tank under the Royal Academy of Cambodia, said the RCEP has emerged as a key advocate for free trade and multilateralism in the wake of escalating protectionist policies, particularly from the United States. "The RCEP has become a stabilising force, fostering economic integration across the Asia-Pacific," he told Xinhua. At the forum, 21 memoranda of understanding were signed between representatives of Cambodian and foreign enterprises, covering a wide range of business areas. - Bernama-Xinhua
Daily Express
3 hours ago
- Daily Express
Malaysia to focus on aerospace, shipbuilding
Published on: Saturday, June 21, 2025 Published on: Sat, Jun 21, 2025 By: Bernama Text Size: Industry growth has been driven largely by demand in the leisure and security vessel segments, with Malaysian yards now producing high specification yachts and defence-related boats. Kuala Lumpur: Malaysia is sharpening its focus on becoming a regional aerospace and shipbuilding hub, banking on high value investment, technical capability and geostrategic positioning to elevate its industrial profile over the next decade. Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid, chief executive officer of the Malaysian Investment Development Authority (Mida), said the country is well positioned to serve as a competitive Asean aerospace base, driven by its strength in engineering, maintenance services and systems integration. 'At Mida, our strategy hinges on high-quality investments, fostering local global partnerships and advancing key enablers such as industrial digitalisation and sustainability,' he said in an interview with Bernama. To date, Malaysia's aerospace sector has secured RM26 billion in approved investments, with more than 18,000 jobs generated, affirming the nation's growing significance in the regional aerospace value chain. In 2024 and the first quarter of 2025, the sector attracted RM1.5 billion approved investments, of which 71.3 per cent was from foreign sources, with the remainder driven by domestic capital. These projects are expected to create more than 550 skilled jobs, primarily in aerospace manufacturing and maintenance, repair, and overhaul (MRO) services, particularly among Tier 1 and Tier 2 suppliers. Advertisement Malaysia already hosts Boeing's only wholly owned manufacturing facility in Southeast Asia, Boeing Composites Malaysia (BCM), which produces composite parts for all Boeing commercial aircraft. President of Boeing Southeast Asia, Penny Burtt regards Malaysia as a valued partner across Boeing's commercial aviation, defence and services businesses. She said Boeing's efforts in Malaysia include advancing aviation safety, supporting sustainability initiatives, strengthening the supply chain, engaging the community and nurturing the aerospace workforce of the future. 'Boeing's 78-year presence in Malaysia is a testimony to our longstanding commitment to the country and the broader Southeast Asia region. BCM in Kedah, Boeing's first wholly owned manufacturing facility in Southeast Asia, taps the country's growing capabilities and talented workforce. 'Today, with all-Malaysian employees, BCM supplies composite products and subassemblies for all Boeing commercial aeroplanes,' she said. While aerospace remains the headline, Sikh Shamsul said Malaysia's ambitions extend offshore, while pointing to the shipbuilding and ship repair (SBSR) sector as an emerging pillar, underpinned by targeted investment and sustainability mandates. 'Malaysia should always remain vigilant of rising competition from lower cost yards in neighbouring economies such as Vietnam and Indonesia,' he said, adding that cost competitiveness alone will not secure the country's long-term standing. Instead, he said, Malaysia should start focusing on reducing reliance on foreign automation tools, by approaching local robotic manufacturing in Malaysia that could build a whole new automated system integration to improve productivity in the SBSR manufacturing landscape. Muhibbah Engineering (M) Bhd group managing director Mac Ngan Boon said Malaysia's geography gives the company a natural edge - over 4,600 kilometres of coastline and the domestic needs for various vessel and strategies. 'Innovation is central to our operations. We have adopted advanced technologies such as computer numerical control (CNC) laser cutting, virtual ship prototyping, and real-time simulations. These tools improve design precision, reduce production costs and enhance overall efficiency. 'We are also taking proactive steps towards sustainability, including exploring green vessel designs powered by solar and electric energy. These initiatives reflect our long-term commitment to building vessels that meet both market and environmental demands,' he said. Looking ahead, he said the group's upcoming Kuantan Maritime Hub will be a game-changer — featuring a larger shipyard, defence and training facilities, as well as maritime partners and vendors. 'This is part of our long-term strategy to strengthen the maritime ecosystem and position Malaysia as a future leader in the sector. 'We also aspire for Malaysia to place strong emphasis on developing the entire maritime industry — from establishing dedicated maritime institutes to cultivating the necessary talent and building a robust vendor and supply chain network' he said. Malaysia is developing flagship projects such as Lumut Maritime Industrial City, Kuala Linggi International Port and Kuantan Maritime Hub to transition its maritime sector from traditional shipbuilding to advanced technologically integrated manufacturing and logistics, aiming to boost competitiveness, create jobs and foster sustainable practices. To date, Mida has approved RM1 billion in investments for the SBSR sector. In the first quarter of 2025, the sector attracted an additional RM574.8 million, signalling sustained investor confidence. Industry growth has been driven largely by demand in the leisure and security vessel segments, with Malaysian yards now producing high specification yachts and defence-related boats. Exports have reached markets as diverse as Australia, Europe, Nigeria and Brazil. With its twin ambitions in aerospace and maritime manufacturing, Malaysia is signalling a shift from cost-driven industrialisation to value-based engineering and strategic export leadership. As global supply chains recalibrate in response to geopolitical shocks and regional fragmentation, Malaysia must reframe its role as a high-trust systems integrator. This means anchoring local firms in design, integration, and value-added services — particularly for MRO, naval systems and advanced composite manufacturing. On the aerospace front, the country must accelerate its ambition to build sovereign capabilities in composite structures, avionics and sustainable aviation technologies. This requires stronger integration between SMEs and OEMs, not just as contract manufacturers but as co-development and IP-owning partners. Malaysia's strategy for these industries must adapt to global geopolitical changes, including; reconfiguring trade alliances, the emergence of dual-use technologies, and the trend of nearshoring, to define its desired strategic autonomy. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
