CIMB stock faces softer Q3 outlook as funding costs rise

Published on 11/13/2026 at 01:23 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

CIMB stock faces softer third-quarter earnings expectations as funding costs rise. Loan growth and fee income may limit the impact.

What Analysts Expect Next

Higher funding costs and weaker trading income are expected to pressure CIMB's third-quarter profitability.
Loan growth, wealth management fees and treasury client sales could cushion the earnings slowdown.
CIMB has maintained its fiscal 2026 return on equity target at 11% to 11.5%.

CIMB, MYL1023OO000, Illustration mit AI erstellt.

CIMB Group Holdings is heading into its third-quarter results with analysts expecting softer earnings as higher funding costs and weaker trading income weigh on profitability. The outlook was reported by The Edge Malaysia on Thursday, November 12, citing research houses covering the Malaysian banking group.

TA Securities expects competition for deposits to squeeze lending margins in Malaysia and Indonesia, while trading income could ease after a strong first half. The research house kept a hold rating and reduced its target price to RM7.42 from RM8.14. Public Investment Bank also cut its earnings forecasts and lowered its target price to RM8.40 from RM8.70, while Maybank Investment Bank reduced its target to RM7.40 from RM8.40.

Loan Growth Faces Higher Costs

The earnings pressure follows a strong second quarter, when CIMB recorded net profit of RM1.94 billion, supported by non-interest income, lending growth and better cost efficiency. Analysts expect wealth management fees and treasury client sales to provide some support, while CIMB Securities said recent bond-market volatility had a manageable impact on the group.

Shareholder returns remain another focus. CIMB has about RM850 million left in its capital return programme after spending approximately RM446 million on share buybacks. MBSB Research said management was still considering whether to use the remaining amount for special dividends or additional repurchases, while cutting its target price to RM8.35 from RM9.29.

CIMB stock traded at 7.09 MYR on Bursa Malaysia at 4:51 p.m. MYT on Thursday, November 12, 2026, up 0.01 MYR, or 0.14 percent, from the previous close. The Malaysian quote provides the latest available local-market reference for investors following the earnings outlook.

Regional Banking Platform

CIMB Group is a regional banking group focused on lending, wealth management and treasury services, with operations centered on Malaysia and Indonesia and a broader Southeast Asian footprint. Its corporate lending activity is linked to investment in data centers, electronics and semiconductor projects. In Malaysia, CIMB competes for deposits, loans and investment-banking business with Maybank, Public Bank and RHB Bank.