Malaysia’s benchmark index retreated as profit-taking in key heavyweights weighed on sentiment, while overall market activity remained active. Summary FBM KLCI fell 0.83% to 1,684.93 , dragged by losses in banking and selected large-cap names, despite steady trading participation. Market Performance FBM KLCI : 1,684.93 (-0.83%) FBM Mid 70: -0.00% (flat) FBM Small Cap: -0.23% FBM ACE: +0.20% Broad market was mixed , with weakness concentrated in large caps. Market Breadth & Trading Activity Total volume: 3.54 billion shares Total value: RM4.19 billion Gainers: 456 Losers: 678 Unchanged: 550 Market breadth turned negative , reflecting cautious sentiment. Top Movers – KLCI Gainers Axiata (6888.MY) +1.54% Petronas Gas (6033.MY) +1.18% Sunway (5211.MY) +1.15% Losers Hong Leong Bank (5819.MY) -3.29% Maybank (1155.MY) -3.02% CIMB (1023.MY) -2.47% Banking sector weakness was the main ...
CIMB Group Holdings Bhd reported a slight earnings dip in 1QFY2026, as margin pressure weighed on core income, though early signs of stabilisation are starting to appear.
Summary
CIMB’s net profit edged down to RM1.92 billion (-2.9% YoY) due to weaker net interest income, but improving margins and stronger non-interest income signal a potential turnaround ahead.
Key Highlights
- Net profit -2.9% YoY to RM1.92 billion
- Net interest income -5% (margin pressure)
- Non-interest income +11.9% (trading & forex gains)
- ROE: 11.0%
- CASA ratio improved to 43.3%
- Gross impaired loans stable at 1.7%
- CET1 ratio strong at 14.3%
Segment Performance
- Consumer banking: -23% (higher provisions, lower margins)
- Commercial banking: +38% (strong recoveries)
- Wholesale banking: -10% (lower one-off income)
- Digital & funding: +11.1% (boost from TNG Digital)
Key drag: margin compression and higher provisions in consumer segment
Early Signs of Stabilisation
- Net interest margins improving across:
- Malaysia (+1bp)
- Singapore (+12bps)
- Thailand (+5bps)
- Cost of funds reduced by 7bps
Important shift: margins may have bottomed
Strategy in Focus (Forward30)
- RM2 billion capital return plan
- Portfolio optimisation (e.g. CIMB Thai divestment)
- Focus on:
- Capital discipline
- Funding strength
- Simplifying operations
Investor Takeaway
- Short-term pressure from margins, but stabilisation is emerging
- Non-interest income becoming key support
- Strong fundamentals:
- Asset quality stable
- Capital levels healthy
- Watch for:
- Sustained NIM recovery
- Execution of Forward30 strategy
Bottom line: Earnings softened, but early stabilisation signals could mark a turning point if margin recovery continues.
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