CIMB Group to maintain stable capital, liquidity, problem loans

Successful de-risking initiatives will support its ‘stable’ problem loans ratio.

CIMB Group Holdings Berhad and its banking subsidiary CIMB Bank is expected to maintain a stable capital, liquidity, and problem loans over the next 12-18 months, reports Moody’s Ratings.

“We expect CIMB Group's solvency and liquidity metrics to remain broadly stable over the next 12-18 months. The key risk to our expectation stems from the evolving US tariffs on Malaysia and other Asian countries,” the ratings agency said.

The Malaysian bank’s problem loans ratio is expected to be between 2%-2.5% through 2026, it added. This is supported by the group’s derisking of overseas small and medium enterprise business segments in recent years.

Direct impact from the US tariffs is likely to be limited considering the group’s small exposure to US exporters.

CIMB Group's capital and liquidity will remain stable over the next 12-18 months, Moody’s said.

“The group is well-capitalized, with a Common Equity Tier 1 capital ratio of 14.7% as of 31 March 2025. Liquidity coverage ratios across CIMB Bank and CIMB Group's other banking subsidiaries are well above the 100% regulatory minimum,” it said.