MARC RATINGS AFFIRMS CIMB ISLAMIC'S RATINGS WITH STABLE OUTLOOK

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 remai