Analysts expect CIMB's trading income to ease and margins to face pressure

what happened

Public Investment Bank analyst Wong Ling Ling expects CIMB's trading income to fall from the elevated levels seen in the first half, according to Market Talk. She expects higher funding costs to keep pressuring lending margins. Non-interest income could also weaken if fixed-income holdings post mark-to-market losses.

Strong corporate loan growth in Malaysia and bigger contributions from Singapore should offer some support, she said. Wong trimmed her 2026-2028 earnings forecasts by 2%-4% and cut her target price to 8.40 ringgit from 8.70 ringgit, keeping an outperform rating. At the time of the report, the shares were 0.1% lower at 7.14 ringgit.

why it matters

For investors in Malaysian banks, the note shows how quickly rising funding costs can squeeze net interest margins even when loan demand holds up. Revisions at a single lender are modest, but they highlight how sensitive earnings are to fixed-income valuations.

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