CIMB Group's Resilient 3Q25 Performance and Strategic Capital Return Signal Value for Long-Term Investors

CIMB Group's third-quarter 2025 (3Q25) financial results underscore its resilience in a volatile macroeconomic environment, with net profit surging 10% year-on-year to RM2.08 billion. This performance, coupled with a nine-month profit before tax (PBT) of RM8.12 billion and an annualized return on equity (ROE) of 11.3%, highlights the bank's ability to navigate headwinds such as net interest margin (NIM) pressures and geopolitical uncertainties. Equally compelling is CIMB's strategic capital return plan, which allocates up to RM2 billion over two years via special dividends and share buybacks, beginning with a RM760.2 million special dividend of 7.0 sen per share. For long-term investors, these developments signal a disciplined approach to capital management and a commitment to shareholder value, even as the bank prepares for a complex global economic landscape.

Navigating Macroeconomic Challenges with Strategic Agility

CIMB's 3Q25 results reflect its proactive response to macroeconomic turbulence. The bank's newly launched six-year strategic roadmap, Forward30, is designed to future-proof its operations by leveraging global megatrends such as generative AI, geopolitical shifts, and cyclical policy changes. Central to this strategy are four growth levers: optimizing capital, building a leading deposit franchise, cross-selling integrated financial solutions, and enhancing service efficiency through a "Simpler, Better, Faster" approach. These initiatives aim to reduce the bank's cost of funds, diversify revenue streams, and improve operational agility-critical advantages in an environment marked by rising interest rates and shifting trade dynamics.

Geopolitical risks, particularly in Thailand, remain a key concern. As noted in CIMB's investment outlook, trade policy uncertainties linked to global political shifts-such as those under the Trump administration-pose challenges for regional markets. However, CIMB's emphasis on diversification, including investments in developed markets, fixed-income securities, and alternative assets like gold, mitigates these risks while positioning the bank to capitalize on emerging opportunities. In Malaysia, the bank's alignment with Budget 2026 priorities-such as SME financing, Islamic finance, and sustainability-further reinforces its relevance in a transitioning economy.

Capital Returns and Financial Resilience

CIMB's decision to return RM760.2 million in special dividends for 3Q25, with more to follow, is underpinned by its robust capital position. The Group's Common Equity Tier 1 (CET1) ratio stood at 14.8% as of September 2025, well above regulatory requirements and providing ample buffer for future capital deployments. This strength allows CIMB to reward shareholders without compromising its ability to fund growth or withstand economic shocks.

The RM2 billion capital return plan, to be executed over two years, reflects a balance between shareholder value and strategic prudence. By opting for a mix of dividends and share buybacks, CIMB acknowledges market volatility while maintaining flexibility to respond to changing conditions. For investors, this approach signals confidence in the bank's long-term earnings power and its ability to generate sustainable returns even amid NIM pressures.

A Case for Long-Term Investors

CIMB's 3Q25 performance and strategic initiatives present a compelling case for long-term investors. The bank's ability to deliver double-digit profit growth and an 11.3% ROE in a challenging environment demonstrates operational excellence. Meanwhile, its capital return program, supported by a strong CET1 ratio, offers tangible value without sacrificing financial resilience.

Moreover, CIMB's strategic focus on digital transformation, sustainability, and regional diversification aligns with global trends that are likely to shape the financial sector over the next decade. Its involvement in projects such as the Johor-Singapore Special Economic Zone and its commitment to a net-zero transition further enhance its long-term relevance.

In a world where macroeconomic volatility is the new normal, CIMB Group's combination of financial strength, strategic foresight, and disciplined capital management positions it as a resilient player. For investors seeking exposure to a bank that can thrive in uncertainty while delivering value, CIMB's 3Q25 results and capital return plan are a clear signal to watch.