Tariff uncertainties to pose zero direct impact on CIMB's FY2026: Group CEO
This will be due to the group's diversified income strategy and sustainable operational efficiency.
CIMB Group chief executive officer Novan Amirudin said while global tariffs could potentially weigh on regional economic growth, the impact on the bank remains limited and largely depends on how the additional costs are distributed along the supply chain.
"It depends on whether the costs are borne by producers in Asean, consumers in the United States, or absorbed by governments through incentives and supportive policies," he said during a fireside chat held in conjunction with CIMB's Asean Media Day today.
He added that if restrictions on exports from China to the United States prompt manufacturers to relocate to Asean, any resulting oversupply could put pressure on local producers.
"This situation could slow regional growth and indirectly affect the financial sector, as loan growth is closely tied to economic activity," he explained.
Nevertheless, he said CIMB does not rely solely on interest income but has also strengthened its non-interest income streams.
"About 30 per cent of the group's income comes from non-interest sources, including transaction fees, foreign exchange, payment solutions and advisory services.
"These initiatives are aligned with our Forward 30 strategy, which emphasises revenue stream diversification," he said.
On the recent Overnight Policy Rate (OPR) cut by Bank Negara Malaysia, he said the move impacts the lending rates offered to customers.
CIMB also adjusted its deposit rates, such as fixed deposits, which are now at lower levels.
"A lower OPR typically reduces funding costs. Therefore, the net impact on the bank depends on how much lending and deposit rates are adjusted.
"If we are able to reduce deposit rates further, we can still maintain our net interest margins," he said.
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