CIMB Targets 5%-7% Loan Growth in 2025
Strong 2024 Performance
CIMB Group Holdings Bhd’s net profit rose 10.7% to RM7.73 billion in FY2024, while revenue grew 6.1% to RM22.3 billion.
Loan Growth Outlook
PETALING JAYA: CIMB Group Holdings Bhd is targeting a loan growth of between 5% and 7% this year, primarily driven by stronger lending activities in Indonesia and Malaysia.
Regional Breakdown
CIMB’s loan growth outlook is an improvement from 2024, with Indonesia expected to grow within the same 5%-7% range, while Malaysia’s loan growth is projected at around 5%-6%, said the bank’s group CEO Novan Amirudin.
Interest Rates and Loan Growth
On the impact of interest rates on loan growth, he said the group has factored in potential rate cuts across the region, given the evolving macroeconomic landscape.
Challenges in Thailand
Meanwhile, the bank acknowledged that Thailand remains a challenging market due to sluggish economic growth, lack of large-scale investments, and headwinds in key sectors like automotive and petrochemicals.
Net Interest Margins
On net interest margins (NIM), he noted that expansion in 2025 will depend on factors such as competition, deposit and loan pricing, and overall liquidity conditions in its operating markets.
Strategic Directions
Looking ahead, Novan said CIMB Group aims to navigate geopolitical uncertainties, including US tariffs on key industries, by working closely with corporate clients to reassess supply chains and production strategies.
Conclusion
CIMB Group’s strong 2024 performance was underpinned by disciplined cost controls and improvement in asset quality, supported by the group’s portfolio diversification strategy, which serves diverse client segments.
FAQs
Q: What is CIMB’s loan growth target for 2025?
A: CIMB is targeting a loan growth of between 5% and 7% this year, primarily driven by stronger lending activities in Indonesia and Malaysia.
Q: What is the outlook for Indonesia and Malaysia’s loan growth?
A: Indonesia is expected to grow within the same 5%-7% range, while Malaysia’s loan growth is projected at around 5%-6%.
Q: How will interest rates impact loan growth?
A: The group has factored in potential rate cuts across the region, given the evolving macroeconomic landscape, which may reduce loan pricing but also reduce the bank’s cost of funds.