[MARC] MARC Ratings affirms CIMB Bank’s ratings with stable outlook

MARC Ratings has affirmed its financial institution ratings on CIMB Bank Berhad at AAA/MARC-1. The rating agency has concurrently affirmed its AA+ rating on the bank’s existing RM10.0 billion Basel III-compliant Tier 2 Subordinated Debt Programme. The ratings outlook is stable.

The affirmation reflects CIMB Bank’s systemic importance within the domestic banking system, with its domestic loans accounting for a sizeable 12.2% of the banking industry’s total loans as at end-2024. As the core banking subsidiary of CIMB Group, CIMB Bank maintains a strong position in Malaysia’s banking sector, underpinned by its well-established franchise, with total assets of RM649.5 billion as at December 2024.

CIMB Bank’s consolidated gross impaired loans ratio improved to 1.60% from 1.94% the year prior, mirroring broad industry trends. The bank’s loan loss coverage, inclusive of regulatory reserves, improved to 136.0% at the consolidated level, providing a cushion against credit losses. In terms of liquidity, bank-level liquidity coverage ratio and net stable funding ratio remained well above regulatory minimums at 137.7% and 106.4%, with similar strength at the consolidated level.

CIMB Bank’s consolidated pre-tax profit rose 12.1% to RM7.87 billion in FY2024, supported by growth in net interest and non-interest income. Net interest margin improved by 3bps to 1.90% in 2024, but may moderate in 2025 based on wider market anticipation of policy rate cuts in the key countries in which the bank operates. CIMB Bank’s Basel III capital ratios as of December 2024 stood at 15.1% for Common Equity Tier 1, 15.5% for Tier 1 and 19.0% for total capital.

Amirah Aisyah, +603-2717 2969/ amirah@marc.com.my
Darren Leong, +603-2717 2937/ darren@marc.com.my
Elmer Lim, +603-2717 2947/ elmer@marc.com.my