Man Group sets sterling conversion rate for interim dividend

In the second quarter of FY26, CIMB Group Holdings Bhd reported a net profit of RM1.94 billion, a 2.6% increase from RM1.89 billion in the same quarter last year. However, quarterly revenue declined slightly by 0.7% to RM5.56 billion, from RM5.60 billion previously. Earnings per share rose to 17.94 sen from 17.57 sen. For the first half of FY26, the bank saw a 0.3% decline in net profit to RM3.85 billion, and revenue decreased 1.2% to RM10.97 billion.

The bank declared a dividend of 19.65 sen per share, representing a payout ratio of 55%, resulting in a total dividend payout of RM2.1 billion. CIMB's annualized return on average equity (ROE) improved by 20 basis points to 11.2% quarter-on-quarter. Total income increased 2.8% to RM5.56 billion, driven by a 6% rise in non-interest income to RM1.83 billion due to higher franchise fees and sustained client sales.

Net interest income grew 1.3% to RM3.73 billion, supported by asset and loan growth, despite a modest contraction in net interest margin. The group anticipates NIM pressure to ease as loan repricing occurs in Indonesia and lower-cost deposits continue to grow across key markets. Operating expenses declined 1.6% quarter-on-quarter, improving the cost-to-income ratio to 45.2% from 46.8%.

CIMB's asset quality remained stable, with the gross impaired loan ratio reaching an all-time low of 1.6% as of June 2026. CEO Novan Amirudin attributed the Q2 performance to the successful implementation of CIMB's Forward30 strategy and the strength of its banking franchise. He highlighted the expansion of customer wallet share in key segments and the extraction of value from the Simpler, Better, Faster initiatives, while maintaining robust asset quality.

Novan expressed confidence in CIMB's strategic direction and ability to deliver consistent performance across market cycles. The group remains on track with its Forward30 execution strategy as it enters the second half of the year, focusing on sustained asset and loan growth, operational efficiencies, and stronger execution across its growth engines.

The bank will also maintain disciplined capital allocation, as demonstrated by the exit in CIMB Thailand's auto business, while capitalizing on its unique digital proposition at scale through the combined strengths of its universal bank and TNG Group.