Malaysia’s CIMB Group is observing a more cautious approach to borrowing from its business clients due to recent tariff developments. According to UOB Kay Hian, the pipeline for new business loans has remained weak since Liberation Day in April 2025.
UOB Kay Hian analyst Keith Wee Teck Keong noted that CIMB’s overall loan growth is currently around 4%, which is below the bank’s own target of 5%–7%. As a result, Wee has revised his loan growth forecast for CIMB downwards from 5% to 2%, citing weaker business lending and the impact of currency fluctuations.
The strengthening Malaysian ringgit has further contributed to this, bringing the group’s loan growth down to approximately 2%.
CIMB’s management, however, believes that its direct exposure to the tariffs is manageable. Trade-related loans account for less than 5% of the group’s total loans, with US export exposures making up only 3%–5% of that figure. To mitigate potential risks from tariff fallout without increasing provisions, management plans to reallocate some existing provisions from the consumer portfolio to wholesale banking.
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