[RAM] RAM Ratings affirms ratings of CIMB Group and domestic subsidiaries; outlook stable

RAM Ratings has affirmed the AA₁/Stable/P1 corporate credit ratings (CCRs) of CIMB Group Holdings Berhad (the Group) and the AAA/Stable/P1 financial institution ratings (FIRs) of CIMB Bank Berhad, CIMB Islamic Bank Berhad and CIMB Investment Bank Berhad. All related debt facility ratings have also been affirmed (Table 1).

The affirmations reflect CIMB Group’s dominant market position and regional breadth, supported by a strong funding profile, healthy earnings and capitalisation. Credit metrics are expected to remain supportive of ratings, notwithstanding potential spillover effects from Middle East tensions. 

CIMB Group is navigating this period from a position of strength, with its gross impaired loan (GIL) ratio at a record low of 1.7% as at end-December 2025 (end-December 2024: 2.1%). Loss absorption buffers are solid with a GIL coverage ratio of 134.0% and the common equity tier-1 capital ratio is expected to stay above 14% in the near term despite higher dividend distributions. Some pockets of strain may emerge in the Group’s operations in Indonesia, Thailand, the Philippines, and to a lesser extent Cambodia and Vietnam – countries reliant on energy imports and where economic prospects have become less certain. Against this, credit quality in Malaysia and Singapore has been resilient and should continue to hold up, barring a severe and prolonged downturn.

As part of its Forward30 strategy to exit non-core businesses and redeploy capital, CIMB Group recently announced the divestment of its loss-making Thai automotive financing portfolio, a segment that has seen high impairments. This should help to contain credit costs and provide a mild uplift to the Group’s return on equity in 2027 upon the completion of the sale in 4Q 2026.

As the second largest domestic banking group in Malaysia, CIMB Group benefits from systemic support from the government. However, no rating uplift has been applied, given the Group’s already strong credit profile. The long-term CCR is lowered by one notch from CIMB Group’s group credit strength to reflect structural subordination as a non-operating holding company and the presence of moderate company-level debts.

CIMB Group’s core subsidiaries in Malaysia – CIMB Bank, CIMB Islamic and CIMB Investment – are operationally integrated into the Group’s universal banking platform. Their AAA/Stable/P1 financial institution ratings ultimately reflect CIMB Group’s strong group credit strength and our expectation of a “very high” likelihood of extraordinary support from within the Group, if required.



 

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Amy Lo 
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amy@ram.com.my

Kee Hwai Zher 
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