CIMB’s loan growth outlook is an improvement from 2024, with Indonesia expected to grow within the same 5%-7% range, while Malaysia’s loan growth is projected at around 5%-6%, said the bank’s group CEO Novan Amirudin.
“We are expecting loan growth to be a lot healthier compared with FY2024, which grew by 4.8% year-on-year,” he said at CIMB’s FY2024 financial results press conference today.
On the impact of interest rates on loan growth, he said the group has factored in potential rate cuts across the region, given the evolving macroeconomic landscape.
“While a reduction in interest rates may lower loan pricing, it could also reduce the bank’s cost of funds, requiring a strategic balance between deposits and financing,” he added.
Meanwhile, the bank acknowledged that Thailand remains a challenging market due to sluggish economic growth, lack of large-scale investments and headwinds in key sectors like automotive and petrochemicals.
However, Novan said CIMB remains committed to the Thai market, viewing it as an integral part of its Asean network strategy, particularly in wholesale banking.
On net interest margins (NIM), he noted that expansion in 2025 will depend on factors such as competition, deposit and loan pricing and overall liquidity conditions in its operating markets.
“While rate cuts may reduce loan yields, effective management of funding costs could help sustain margins,” he said.
Looking ahead, Novan said CIMB Group aims to navigate geopolitical uncertainties, including US tariffs on key industries, by working closely with corporate clients to reassess supply chains and production strategies.
“We also remain optimistic about our long-term strategic direction, having delivered a strong 11.2% return on equity and 6.1% income growth in FY2024.
“As we conclude our Forward23+ strategic plan, CIMB Group remains focused on delivering sustainable shareholder value, with liquidity positions improving and an annual total shareholder return of nearly 35%,” he added.
CIMB Group posted a higher net profit of RM7.73 billion for FY2024, up 10.7% from RM6.98 billion in FY2023, while revenue rose 6.1% to RM22.3 billion from RM21.01 billion.
Novan said the robust FY2024 performance was underpinned by disciplined cost controls and improvement in asset quality, supported by the group’s portfolio diversification strategy, which serves diverse client segments.