{
  "id": 4098505,
  "title": "CIMB doubles down on dividend payout of above 55pct despite Indonesia headwinds",
  "url": "https://urgent.news/2026/08/29/cimb-doubles-down-on-dividend-payout-of-above-55pct-despite-indonesia",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-29T03:43:44.000Z",
  "source": {
    "name": "New Straits Times",
    "slug": "new-straits-times",
    "url": "https://www.nst.com.my/business/corporate/2026/08/1521133/cimb-doubles-down-dividend-payout-above-55pct-despite-indonesia"
  },
  "original_language": "en",
  "account": "KUALA LUMPUR: CIMB Group Holdings Bhd affirmed its commitment to maintaining a dividend payout ratio above 55 percent, despite facing difficulties in Indonesia, according to group chief executive officer Novan Amirudin. The Malaysian bank, which ranks second in terms of assets, has several options at its disposal across its diverse regional operations to bolster earnings and uphold its dividend policy. Novan stated that the payout ratio has remained consistently above 55 percent over the past few years and would not undergo any changes. While Indonesia poses challenges, Novan emphasized CIMB's strength as a diversified business. Malaysia and Singapore continue to perform robustly, while Thailand is transitioning into a wealth and wholesale-focused economy. This comes after CIMB disposed of a loss-making automotive financing portfolio in Thailand, a process projected to conclude this year. Group CFO Khairul Rifaie highlighted that the bank's net interest income (NII) growth was bolstered by robust total asset growth, driven by a promising pipeline expected to sustain NII growth. However, net interest margin (NIM) pressure partially offset this, with the bank anticipating group NIM to be either stable or slightly down by 10 basis points year-on-year. Khairul emphasized that CIMB Group anticipates loan growth of around five to six percent this year, with its gross impaired loan ratio expected to remain relatively stable, although minor deterioration in some areas might occur due to external factors like Middle East pressures or inflationary costs. The bank retained its financial year 2026 guidance, aiming for a return on equity of 11 to 11.5 percent, asset growth of five to seven percent on a constant-currency basis, a cost-to-income ratio under 47 percent, loan loss charges between 25 to 35 basis points, and a common equity tier-one ratio of 14 percent.",
  "summary": "KUALA LUMPUR: CIMB Group Holdings Bhd is doubling down on its dividend payout ratio of above 55 per cent despite challenges in Indonesia, group chief executive officer Novan Amirudin said.",
  "key_points": [
    "CIMB Group pledges dividend payout ratio above 55% despite Indonesia challenges",
    "CEO Novan Amirudin confirms consistent payout ratio above 55% over years",
    "Malaysia and Singapore perform robustly, while Thailand shifts to wealth-focused economy"
  ],
  "editors_take": "CIMB's commitment to a dividend payout ratio above 55 percent signals its confidence in sustaining earnings growth across its diversified regional operations, despite challenges in Indonesia.",
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}