MARC RATINGS AFFIRMS CIMB GROUP'S RATINGS WITH STABLE OUTLOOK

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 rep