Earnings call transcript: CIMB posts strong Q2 2026 profit as shares slip

CIMB Group Holdings Berhad reported a strong second-quarter profit of MYR 1.94 billion in Q2 2026, accompanied by an annualized return on equity of 11.2%. The lender attributed the results to stronger operating income, wealth-related fees, and disciplined cost management. Despite margin pressure and Indonesia-related provisions weighing on the outlook, CIMB maintained a cost-to-income ratio of 45.2% and an all-time low gross impaired loans ratio of 1.6%.

The bank's total operating income rose 2.8% quarter on quarter, driven by a 6% increase in non-operating interest income and a 1.3% rise in net interest income. CIMB's management highlighted the benefits of its "simpler, better, faster" transformation plan, with operating expenses remaining flat sequentially and a declining cost trend beginning to show.

The bank's net profit, ROE, cost-to-income ratio, gross impaired loans ratio, CET1 capital ratio, dividend per share, and dividend yield were all reported. Although CIMB maintained its 2026 guidance, investors showed caution due to continued funding and margin pressure in some markets.