Malaysia’s CIMB sees slower loan growth on ‘cautious’ business clients

The new business loans pipeline is reportedly weak post-Liberation Day.

Malaysia’s CIMB Group has flagged a more guarded lending stance from business clients on unfolding tariff developments.

New business loans pipeline reportedly remained weak post-Liberation Day in April 2025, according to UOB Kay Hian.

For CIMB, group loans growth is tracking around 4%, below the bank management’s target of 5%–7%, said UOB Kay Hian analyst Keith Wee Teck Keong.

“Consequently, we are revising our loan growth assumption downwards from 5% to 2% to reflect weaker business lending and currency impact,” Wee said in a 24 July 2025 report.

Group level loans growth is even weaker at approximately 2% due to the strengthening of the Malaysian ringgit, Wee added.

CIMB’s management said that direct exposure to the tariffs is manageable. Trade-related loans made up less than 5% of the group’s loans and clients, with US export exposures comprising only 3%–5% of group loans.

“At a granular level, management plans to reallocate some management overlays from the consumer portfolio to wholesale banking to buffer against potential tariff fallout without topping up provisions,” Wee said.