Cimb Group Hldgs Bhd Ord

Good afternoon, ladies and gentlemen, and welcome to CME Group's Financial Results Briefing for the first quarter of 2026. Our host today is CME Group CEO, Novan Ameeruddin, and Group CFSO, Khairul Rifai. My name is Steven from the CME IR team. You should have received the latest and latest presentation and financial statements via email from CME Group Investor Relations. Otherwise, you may find the documents in the IR section of our website at cme.com. Please be informed that this briefing is being recorded. Also, please include your name and company on the Teams app to allow us to identify you. All participants' lines are currently on mute and you will have the opportunity to ask questions after the presentation by using the raise hand function. At this juncture, I would like to hand over the briefing to Norman and Cairo.

Norman, over to you. Thank you, Steven.

So it's been a Brazilian first quarter 26 performance for CIMB Group, despite the various headwinds that we saw, whether is it on the geopolitical side or even on FX. If you look at the table on the left-hand side, the year-on-year impact on FX to our group as a result of the depreciating currencies in ASEAN However, despite all these headwinds, I am pleased to announce that it has been a resilient first quarter for us. Operating income is flat at RM5.4 billion when we compare quarter on quarter. The reason for this resilient performance despite Hldgs Bhd Ord Hldgs Bhd Ord Hldgs Bhd Ord On the NII side, there was a quarter-and-quarter decline of about 5%, year-on-year 3.6%, but if we look at it on a constant currency basis, it actually grew by 1.4%. This decline was as a result of a compression in NIM for a group of about two basis coins, but we actually saw expansion in Malaysia, Singapore, and Thailand. Nonetheless, with what we are seeing today, Malaysia, Singapore and Thailand have seen expansion. There is a 50 basis points hike in Indonesia that recently got announced. Based on the current economic situation in each of the markets that we operate in, we are expecting this steam compression to bottom out. With regards to our asset growth, The pipeline remains strong, and we also saw decent, healthy growth in the first quarter. Asset and loans grew 1.1% to 1.3% quarter-on-quarter on a constant currency basis. But more importantly, if you zoom into some of the respective markets, Malaysia, for example, saw loans grow of 5.9%, and Singapore seen loans grow of 3.5%. So when we look at the overall first quarter performance when it comes to income, we see very strong NII. We see NII despite being challenged in the first quarter due to income pressure. That income pressure is falling out and we're seeing Hldgs Bhd Ord Hldgs Bhd Ord Moving down the profit and loss to our operating expenses, I think this is one area where the Group has been relentless on becoming simpler, better and faster throughout the Group as part of Forward 30 and this course discipline is showing. Group Hldgs Bhd Ord Moving now to asset quality, despite the current headwinds that we're seeing, asset quality continues to remain strong. JIL maintains at 1.7%, same level as fourth quarter last year. First quarter, 25, was actually 2.2%. So asset quality continues to remain strong. We do have a limited direct exposure to the Middle East, while we continue to assess very comfortable. We run a lot of scenario analysis on what the potential second or even third order impacts would be. But at this point in time, our portfolio remains strong. Lastly, on capital, this remains robust with CED1 at 14.3%. This is a very important part of our 30. We continue to be very disciplined with our capital allocation. You saw that in November last year when we announced the capital return programme. You saw that just a few weeks ago when we announced the divestment of our CIMB Thai auto loan business. And we continue to be disciplined with regards to capital allocation and we're very, very firm about not growing at all costs. There have been some many opportunities that we have evaluated. We always evaluate opportunities, but we're very disciplined in terms of ensuring that we only will invest and grow at the right price. And this is a discipline that we continue to have. Next page please. So recap of our Forward 30 strategic plan anchored on our purpose of advancing customers and society. It's all about the four Cs. So our capital and resources where we continue to re-allocate to grow. You saw that when we announced the capital plan, you saw that. when we did the divestment of Thai auto business. Our second seed cash, all about building a strong losses franchise to reduce cost of funds. Our third seed, Crossell, all about increasing returns. You saw the strong performance in NOII. And the fourth seed capabilities, just becoming simpler, better, and faster. And you saw them in the reduction of our operating expenses, which led to an improvement of our cost to income ratio. Next page, please. I will now take you through an update on the key areas that we have put on with regards to each of the four Cs in the first quarter. On the capital side, as I mentioned earlier, as well as as we presented during of the Thai auto loan portfolio. We continue with our transformational change to win in Thailand. You saw us exiting that non-cost upscale business. There is an operating model change to sharpen our focus towards wealth and wholesale. The sales proceeds that we get from selling this portfolio will be used to repay high funding costs in Thailand. Part of it will be used to grow the wealth and wholesale segments in Thailand. and the balance that we you know budget this to be about 11 billion Thai baht worth of capital to be returned to the Group. With regards to innovation, we are currently in a pilot together with SCE and Bursa Malaysia to come up with investment options for Shara compliant investors to participate in the Malaysian banking sector. This is something you know that we are working on and hopefully you know we can launch pretty soon. 2. With regards to cash, the whole focus on a franchise and deposit bet strategy has allowed us to reduce our cost of funds 44 basis points And this is really coming from our strong growth in deposits as well as our reduction in LDR. If you look at the chart on the right hand side, this is to show to you why we are confident that we are seeing signs of NIMP bottoming out. I mean if you look at the markets of Malaysia, Singapore and Thailand, it has certainly bottomed out Our third fee, cross-sell. This is something that we continue to push as evident in the growth in the NYI in the first quarter. Fee and commission income is up 4% quarter-to-quarter. Treasury client sales continue to increase. It was up 1% quarter-to-quarter and 2.2% year-on-year. Our wealth AUM year-on-year continue to increase and our number of wealth customers packing We also, during the quarter, announced a strategic partnership with Pan International, who are our partners in Touch & Go today, where we are working on innovations with regards to cross-border payments as well as treasury and liquidity management solutions. This is something that we are quite excited about to announce to the market when this is ready. Our 4C with regards to capabilities, we are relentless on becoming simpler, better, faster and therefore this is clear in the reduction of our overhead expenses which then led to a reduction in our cost of income ratio but not at the expense of investments in technology and data. This continues to be within the 8-9% guidance that we've been providing every year. With that, I will now hand it over to Cairo to dive deeper into our financial performance. Over to you, Cairo.

Thank you, November, and good afternoon. Key highlights of the first quarter of slide 8 are some three additional points to what was already presented. Firstly, if you look at the robust trading and effects component, it has really driven our NOI proportion to total income significantly. During the quarter, it expanded to 31.9%. PhpDt PhpDt PhpDt PhpDt PhpDt PhpDt As what we highlighted earlier, we reported strong underlying performance. If we look at it from a PPOP constant currency basis, that grew very well year on year. Within that number, you can see Indonesia and Singapore growing well both on PPOP and also operating income growing at 8.1%. also break it down between the two P&L lines. You can see at the high, going at 1.4% year-on-year. Similarly, NOI recording a stronger growth at 8.4% year-on-year. Given the very strong cost discipline that we have executed in the first quarter, this gave us a very good operating leverage, driving that year-on-year PPOP growth of 2.7% year-on-year on a constant currency basis. Moving on to the highlights on segment by BBT on slide 10. Firstly on consumer, the QoQ growth was impacted in terms of the NIM pressure coming up from the loan and also the very strong FTE growth. Another impact is that during the fourth quarter last year, we had a write-back related to MES and also formalase. However, if you look at it from a wealth perspective, that remains strong during the first quarter and that also drove a very good NOI growth Hldgs Bhd Ord Hldgs Bhd Ord Wholesale banking, very good stock line growth during the quarter, driving a very strong PPOV growth of about 10%. However, last quarter, we had some write-back coming through in Indonesia, so the absence of that driving the QoQ BBT lower. Similarly, on a year-on-year basis, we also had a higher write-back coming through from Indonesia. in the first quarter of last year. In addition to that, the year-on-year performance was slightly affected by a moderate top line for wholesale banking. Commission making both QoQ and YoY was driven by the current year first quarter right back on ECL coming through from Malaysia and Indonesia. This is a recovery that came through a reflection of the asset quality and our recovery efforts. One point on the YoY apart from the ECL right back was recorded this year. NIN was improved on a YoY around 10% year-on-year. CDE and Group funding overall, Touch & Go Digital and Touch & Go continued strong performance during the first quarter. However, on a queue-on-queue sequential basis, the PBT was impacted due to the write-back on bonuses that we recorded during the first quarter. So the absence of that impacted the PBT performance. Moving on to slide 11, firstly on Malaysia, very good names is what we saw in terms of the trajectory for Malaysia both year-on-year and Q-on-Q. That drove Malaysia's NRI by 5.4% year-on-year. However, within the Malaysia context, trading and FX was down year-on-year in Q-on-Q. And in the fourth quarter last year as well, we had some lumpy other income. I think it's important to highlight here in terms of Malaysia's performance, credit costs for Malaysia Singapore, based on underlying and robust growth, PPOP grew by 6% year-on-year, driven by both wealth and also strong treasury and markets. However, last year in the fourth quarter and in the first quarter, we had higher ECL recoveries and like that. So in Indonesia, despite the challenges that we have in terms of the macro backdrop, driving slightly moderate or weaker growth and NIMS, fees and trading and FX was strong. on a Q-on-Q basis. On ECL, similar to Singapore, last year in first quarter and fourth quarter, the ECL had a higher right back, impacting the year-on-year PTT growth. Thailand, the transformation is ongoing and executing well. So we had costs coming down on a Q-on-Q and year-on-year basis. In addition to that, trading and FX was also strong driven. On slide 12, breakdown of the PML, firstly on NRI. As what you saw earlier, you can see group names really bottoming out. Just to explain in terms of the drivers for the Q on Q name performance, Malaysia, that slight expansion is really driven by cost of deposits coming down, and this is both driven by our KASA expanding significantly for the quarter, and also some of the more expensive in Indonesia, the contract shift is driven by two things. One, there was some one-off adjustment that impacted the interest expense during the current quarter. In addition to that, some underlying pressure on the news. If you exclude some of the one-off adjustment, the contract shift is significantly smaller than what is reported here. Thailand and Singapore, the same drivers of that margin expansion. This is really our optimisation in terms of some of the more expensive deposits and with that also some of our expensive CASA campaigns. We ended some of that to optimise our NRI and you can see that later some of the CASA growth are being impacted in Singapore and Thailand and that was intentional. On a year-on-year basis, Malaysia is really our proactive and pre-emptive strategy in terms of our liability management, helping us sustain the level of NIMS for Malaysia on a year-on-year basis, given the headwind that we had in July on the policy recap. In Indonesia, Indonesia, Singapore and Thailand, all three countries were heavily impacted in terms of the policy rate movements, therefore driving that name contraction. In addition to that, in some of the markets, we did have a very high competition in terms of deposits, in particular Indonesia, especially in the first half of last year, impacting the overall 12-month year-on-year number. 13 on NRI, this is where you can see we had a very robust trading and effects number or achievement during the first quarter. But in addition to that, if you look at the fees, that also grew quite well at 5.4%, QQ driven by wealth in Malaysia and Indonesia. Breaking down the trading and effects, both time franchise and trading group, of course the trading number is a lot higher in terms of the growth driver. On a year-on-year basis, the fees and other income, that's mainly driven by Singapore Bankruptcy that continue to be growing well, that's offset slightly by weaker fees in other business segments. On the trading and effects component, that's mainly driven by Indonesia, Singapore and Thailand, fully offsetting some weakness on the trading and effects in Malaysia. and breaking it down between the two, both growing well both on the treasury client sales and also the trading component on a year-on-year basis. Slide 14, on OPEX, like what we mentioned, we exercised very strong cost controls and that has driven costs to be lower QoQ and also year-on-year. There is some seasonal impact Hldgs Bhd Hldgs Bhd Hldgs Bhd Hldgs Bhd Hldgs Bhd Hldgs Bhd Hldgs Bhd Hldgs Bhd Hldgs Bhd Hldgs Bhd Hldgs Bhd 2.5 billion Ringgit level. On a year-to-year basis, very good containment of costs, contracting by 1%. You can see personnel costs are flat-ish. The lower growth in establishment and marketing is really the driver of our tactical cost saving into those two lines. Technology will continue to invest by recording a flat-ish growth year-on-year. On slide 15, on asset quality, this remains strong and stable. Firstly, in terms of the recoveries, this is lower QoQ and also year on year. Firstly, we did have a higher Bhd Bhd Bhd Bhd Bhd Bhd Bhd Bhd Bhd Bhd Bhd Bhd Bhd Bhd Bhd Bhd Bhd Bhd In terms of the non-retail number, if you look at the fourth quarter last year and first quarter last year, we did put in some overlays. In the fourth quarter last year, it was related to corporate segment. In the first quarter last year, it was related to the trade war, so some overlays, we plated a bit some of those numbers on the non-retail side. On retail, the increase on a year-on-year and QMQ basis is really driven by the timing of some of our write-backs on overlays and MEN and the reallocation of that. Just to highlight, in the first quarter of 2025, there was a model employment and that led to some write-backs coming to the first quarter of 2025. You can see in terms of the gross impact, loans ratio that has remained stable but a very consistent improvement from last year. Loan loss charge at 31 basis points as well within our guidance of 25 to 35 basis points. Allowance coverage remains very well, comfortably above 100%. I would like to also highlight here that in terms of our overlay, we have not yet made any new forms of overlay, in particular coming through from the potential impact from the macro uncertainty coming out from the Middle Eastern tension. We have not done any of those new overlays in the first quarter of 2026. We are reviewing whether we are going to Total Asset Growth & Debt Securities Total Asset Growth & Debt Securities Total Asset Growth & Debt and also 6.9% year-on-year. Singapore contracted Thiong Q and that's driven by the significant maturity that came through within the quarter and we have not yet deployed the matured liquidity that we have gained and is still at the moment sitting as cash and waiting for the right opportunity to deploy. Slide 17 on Gross Loans, overall this is driven by wholesale banking. If you recall during our third quarter announcement, we did mention that our pipeline is strong and that has come through in the fourth quarter and also in the first quarter. So it has been good momentum on wholesale banking over the past two quarters. The outlook as well, there still remains a fairly decent pipeline going forward. So you can see under wholesale banking, 30% growth is driven by Malaysia, Thailand and Singapore. In consumer banking, that negative growth is mainly driven by Thailand and Indonesia, whereas in Malaysia and Singapore consumer, the growth has continued to be supportive. In commercial banking, that contraction beyond Q is mainly driven by Indonesia. So within the countries, if you look at Malaysia, that's driven by wholesale banking growing by 11%, and consumer banking growing at 4% year-on-year. Indonesia, GWB growing at 5% year-on-year. Singapore, consumer growing very strongly, especially on wealth financing, growing at 11% year-on-year. Whereas Thailand, the negative growth is really given the backdrop of the environment on the consumer segment. On deposit on slide 19, this is really about our good growth in terms of the underlying CASA, especially driven by wholesale banking. You can see in terms of the total CASA growth, Kyong Kyu and Yeon Ye that remains good. Within the wholesale banking number, Hldgs Bhd Ord Hldgs Bhd Hldgs Bhd Hldgs Bhd Hldgs Bhd On slide 19, on capital, our capital ratios remain very stable, our liquidity ratios all remain strong and stable, all improving across the board. By segment, if you look at consumer banking, firstly, the contraction is really driven, Tiong Ku is really driven by the margin contraction, NOI still remains good, another partial TPOP growth higher QoQ. However, the ECL has picked up during the quarter because of the overlay writeback that we recorded in fourth quarter 2025. Similarly, year-on-year, ECL increased because of the ECL writeback related to the model deployment. In terms of loan growth, that's really driven by Malaysia growing at 4% year-on-year. In terms of deposits, KASA still remains good. Indonesia KASA grew by 5.5% year-on-year. Malaysia KASA grew by 4% year-on-year. Commercial banking on slide 21, top-line growth was fairly moderate year-on-year. However, if you look at the year-on-year number, like what I mentioned, the NIM did expand because of the However, both on KyongKyu and Yogyur, the NOI is down, driving that moderate or slightly weaker growth in terms of operating income. Where it remains strong is in terms of asset quality and the recoveries that we recorded in Indonesia and Malaysia during the first quarter this year, both the PBT growth overall. In terms of loans, Hldgs Bhd Ord Hldgs Bhd Hldgs Bhd Ord in terms of the PBT contraction QoQ that's really driven by the higher cost because of the accruals that we made for the run-back in terms of the bonuses that we recorded during the fourth quarter so normalization of that drove the PPOP being weaker overall but in terms of the year-on-year performance that is strong driven by the lower ECI Tachengo Digital remains profitable since Q1 2025 and the trajectory remains positive during the first quarter. We have now disclosed as well the total payment value in billions as a better reflection of the revenues. And you can see a very good growth and strong growth from the TPV almost doubling coming up from the first quarter last year to the current number of 76 billion. So the momentum is very positive for Taichung Gold Digital. For Sambi Philippines, as what we highlighted, we are recalibrating some of our risk appetite in Sambi Philippines Group Hldgs Bhd Ord Lastly, on Islamic, on slide 26, good growth, both on PVT, both on Qiongq and Yonya. On a Qiongq basis, that's driven by lower OPEX, and on a Yonya basis, driven by some of the lower OPEX on the recoveries. On Islamic financing, that continues to outpace the conventional side, and is mainly driven by mortgages in the Islamic deposit space. Apart from MDs, CASA also grew Thank you, Cairo. In conclusion, we are obtaining our 2026 guidance despite the current volatility observed in the first quarter.

The main reasons are we are seeing asset and loan growth continue to be resilient We are seeing early signs of theme compression particularly for the big out. We are already seeing expansion as I showed earlier in Malaysia, Singapore and Thailand. And we are seeing signs of Indonesia improving. Hldgs Bhd Ord Hldgs Bhd Ord Hldgs Bhd Ord Hldgs Bhd Ord Hldgs Bhd Ord Hldgs Bhd In terms of key risks that we face, firstly, it affects headwinds. We are seeing currencies outside Malaysia relative to the Ringgit depreciating over the last 20 months. We saw that from Indonesia, we saw that in Thailand. To some extent, Singapore visited the Ringgit. These headwinds will be cyclical, but it is cyclically affecting our consolidated earnings. The other key risk that we are observing very very closely is the impact of rising inflation to our customers as well as to our own business as a result of the current dislocation in supply chain, increased fuel prices and so on. With that, I will end here and happy to take any questions that you may have.

Thank you, Norman and Cairo. We will now begin the Q&A session. If you would like to ask a question, please use the raise hand function and we will unmute your line. Our first question comes from Tushar from Nomura. Tushar?

Hi, thank you for taking my questions. Firstly, I just wanted to ask, what are you seeing on the ground with regards to asset quality? As it has now been a couple of months, prices have stayed high, there is some supply disruptions. While Malaysia still has a lot of subsidies, but some businesses have started to see higher diesel price, electricity costs, etc. So, just wanted to ask for this 25 to 35 basis points credit cost guidance to hold. By when do we need to see some like real ceasefire reduction in things like oil prices etc.

So Tisha, I think just to provide some context, even from the very start of the conflict, we did multiple scenario analysis based on various assumptions on the macro. Some are relatively decent, but some are very conservative and very stressed. So we've done all those areas and we looked at what are the probabilities of that. And in terms of on the ground itself, so far, even though a couple of months have passed and there are some, you know, pressure in terms of these supplies that we mentioned, we have not seen any signs of deterioration yet on the ground. Our R&R numbers are still fairly stable. Just to provide a bit more colour from that perspective, we did see, you know, some delicacies arising on some consumer segments in March, and we did for Eid or Raya and that turns out to be true where we saw that improvement coming through in April. So some of the numbers on the household segments on the liquidity in Malaysia has recovered to pre-March. So we haven't seen any underlying pressure yet coming through from this. To your point on our 25 to 35 basis points guidance, I just want to also recap that last year we did put in quite a decent amount of overlays related to the trade war around the same time this time around last year. And that is also some of the inflationary pressure. Our observation period of that is coming to an end, almost to an end now, and we haven't utilised and the amount of that overlays. So we will then need to reassess whether the uncertainty coming from the Middle East would need overlays and we can reallocate some overlays related to the trade war to this component and that's where for now we are fairly optimistic. We are maintaining our 25-35 basis points guidance. We will need to see how the macro backdrop further evolves from here. Based on our base case, we believe that our overlays are sufficient to be replenished to a new form of emerging basis.

I'll just add on to that. We've also been carrying in the break over the last few years in terms of reshaping our loan book. We exited the commercial business in Thailand. We've ramped out and turned around the You know we've been very deliberate in terms of shifting a lot of the and therefore that's one of the other reasons why we're still seeing a very resilient asset quality despite the various limits that we have been seeing at the moment. But having said that, we continue to analyze the situation very closely. We're running a lot of scenarios In fact, we have prepared all the various tools in place internally to support our customers during times like this. In Malaysia recently, we as part of the overall industry announced a program to support SMEs that need assistance during times like this using cheaper cost of funding from Bank Negara program. to then provide competitive financing to customers that need assistance. But we continue to assess the entire situation, but at the moment I think due to the reshaping of our portfolio over the last few years that has certainly helped improve the resiliency of our notebook.

Okay, thanks. That's very useful. Second, can I ask on assets growth? So we shifted to a total assets growth started starting this year. You had also shared I think previously that demand was still strong in first quarter because of some of the previous pipeline, but the situation is evolving. So, do you see clients scaling back? Is there still a demand to hit that loan growth target? Or your own risk appetite, are you scaling back in the coming quarters?

We are sticking to our risk appetite because we are very clear in terms of the customer segments that we are banking at the moment. Based on discussions with a lot of our customers, the pipeline is still very strong. On the wholesale side, we are still seeing quite a bit of pipeline, especially in Malaysia. Thank you and maybe just one last one.

Touch and Go Digital had a profitable year, I think, about 100 million. There are some articles on it recently on whether it is the right time to list. How do you think Touch and Go Digital fits into the Forward 30 plan? Do you think it's a bit early on for value unlocking from it or all options are on the table?

Touch & Go Digital is a crucial component of Forward30. While the bank in Malaysia has 8-9 million customers, Touch & Go Bank has more than 20 million customers. The value of QR payments has exceeded the value of credit cards as well as debit cards. It's a crucial part of the IRB in terms of how we serve our customers. Because if you think about it, we have Touch & Go, we have Octo that serves the retail customers and OctoBiz that serves the non-retail customers. The growth has been extremely strong, a lot stronger than what we initially anticipated, including this year. With regards to any value unlocking, all options are on the table. We are constantly integrating the market. We, CIB, we are the top investment bank in the country. We do take a lot of customers. to IPO. We do know what the sentiment is in the capital markets at the moment. In certain segments, it has been very, very encouraging, but we will continue to monitor. We're not in a rush, but the business certainly is in the right trajectory.

Thanks, Noonwan. Thanks, Khairul.

I'll jump back in.

Thank you, Tushar. Thanks, Tushar. Our next question comes from Yong Hong from CPP. Yong Hong.

Thanks Steven. Can you hear me? Yup. Thanks Norman, thanks Carol. The first question is just on the guidance for this year. If the FX drag persists and if the bond market remains challenging, should we be expecting the 11% to 11.5% ROE to come mainly from your NI growth for this year? The restructuring cost from Thailand has already been included in the 11% to 11.5% so there are

So it is already part of that guidance. If FX continue to be a headwind beyond what we project then certainly we are looking at other levers such as Our NOII side, which has been performing a lot stronger than what we initially expected. The asset pipeline is as strong as what we had initially anticipated, so I think that part is okay. The other area that we continue to do better than what we budget is operating expenses. We continue to be very vigilant with costs. Everyone throughout the organisation is relentless about it, and that is something where we continue to see as a potential lever. Certainly, NOII, OPEX, those are potential levers. We also got our character repayment back. As you know, November last year we announced up to N27. If, let's say, to your point, market growth is a lot slower than what we initially anticipated, then we always have the flexibility to accelerate the capital repayment because if market is not growing due to macroeconomic conditions, then we should redress excess capital to shareholders. So we still do have enough levers to ensure that we are within the 11% to 11.5% guidance at the moment.

Maybe just following up on the OPEX, in your Thai briefing two weeks ago, there was an OPEX guidance of 2020 installment to be flat from 25 levels, and there seems to be cost disabling or cost savings of about $400 to $500 million next year. So anyway, can you bring that forward into this year, especially as you were mentioning, if there's any earnings risk that could be unforeseeable?

Yeah, so I think we need to be very agile and dynamic on this and also it's highly dependent on whether we can accelerate some of the cost takeout and a lot of that really depends on how we execute the Thailand transformation. Like what we highlighted to the market, we are expecting the competition in the early part of fourth quarter Hldgs Bhd Ord Hldgs Bhd Ord Hldgs Bhd

Okay, got it. And maybe also following up again on the capital return plan, how should we think about timing of that 1.25 billion USD value? Because we also have more coming onto our books next year. So just wondering how should we be thinking about the timing for the special dividends?

So at the end of the day, capital is used to grow, to deliver shareholder returns. If the growth opportunities are not there, and is more efficient to return excess capital to shareholders, then that is something that we will do. But our first option, of course, always is to grow the business.

But these $2 billion that we announced, that should be over and beyond what we are already projecting for that growth, right?

That's correct. But you're asking about timing, right, Yeo Hong? So we gave ourselves until end of 2017. Timing means we accelerated a lot faster. So that one will be subject to what the market environment is at the moment.

Okay. But if we still into next year, then that will basically have an addition for the time of the release, right? So there are more coming towards the end of the year.

And again, we go through the similar thought process. Are there any opportunities to grow? And if the opportunities to grow will yield better returns for shareholders, then we will take that path. But of course, if the opportunities to grow do not provide more severe returns to shareholders and spend all the betting and excess capital, then we will do that. So we will go through that same thought process.

Okay, got it. And just one small question. Earlier there was a comment on the one-off impact on Nyagant Lens. Is that only impacting the first quarter and I? Or will this interest expand roll-off in second quarter or this will be in the new base going forward?

No, it's not going to be a new base. It is a one-off impact that we are taking in the first quarter. So there is a one-off impact coming through on some adjustments

So if we exclude that, what should be the margins for this quarter?

If we exclude that, on a Q-on-Q basis, you saw firstly on the reported basis with that one of impact, sorry, by minus 5 basis points, without that impact, you'd be in the very low single region, closer to the minus 2 year-on-year.

Sorry, Q-on-Q.

Okay, sorry, first quarter was 2.08, right? The name...

Our next question comes from Jin Han from Afin

Hi Novan, Hi Cairo, Hi Steven. A couple of questions from me. One, could we get a little bit more colour in terms of how much wealth management related income mixed up of CIMB Groups NOII and within that particular bucket, what's the contribution from Bangka? Could we also get a sense in terms of the magnitude of AUMs in terms of sizing and how that's trended beyond just let's say this quarter over the past year or so?

Yeah, so I have to get back to you in terms of that specific number of component in terms of wealth. But what I can share offhand, two-thirds of fee and commissions come from consumer, roughly about two-thirds come from consumer. That is the base number. But what I can give you a bit of colour, because I don't have the number at hand because of the wealth proportion. The driver for the Yonier and Fiong Fiu is really driven by my wealth. On a Yonier basis, the Banka Singapore wealth is the biggest driver, where the other components of fee income on consumer is fairly flattish. On some areas, it's actually down. So Bank of Singapore is really a big driver on a year-on-year basis.

Right, right. And in terms of AUM, how big a size is the total AUM that's actually managed by CIMB Group?

I don't have the number of hands as well. We'll have to get back to you on that specific AUM.

Okay, sure, no worries. Just another question in terms of looking towards 2027 and the 12-13% ROE target. Assuming, let's say, Indo kind of goes below 13%, like the current traction is actually running up to first quarter, how much more does Malaysia, Singapore, even Thailand have to run in terms of ROE to actually Group Hldgs Bhd Ord Hldgs Bhd Ord Hldgs Bhd Ord Hldgs Bhd Ord

The second component is another 10 to 20 basis points coming from the time transformation by two things. One is the absence of loss making auto business. Secondly, as what you have heard from Wood, Thailand itself in 2027 that will give us 20 to 40 basis points uplift to our 2026 ROE. Another component is the capital return program. So the capital return program that remaining 1.3 billion will give us Hldgs Bhd Ord Hldgs Bhd

Once again, if you would like to ask a question, please use the raise hand function. And we will unmute your line from there. It appears that we have no further questions open.

So, yes, please just pass it back to you for your closing remarks.

Thank you very much for your time today to join us on this call. I just want to reiterate that despite all the headwinds that we're seeing, we're maintaining our guidance and really coming from the point of view where our business on the NII side, we're still seeing very strong asset and loan growth in the pipeline. NIMS are on the ground. On the NOII side, to continue to perform very, very strongly. OPEX team has been extremely disciplined. We've seen reduction in OPEX numbers. This is something that we'll continue to be very, very vigilant about. Asset quality, you know, remain to be very strong. Also, mainly as a result of the disciplined growth that we've put in over the last few years, the fact that we've reshaped our portfolio to focus on a more better Hldgs Bhd Ord Hldgs Bhd Ord So with that, you know, have a good public holiday for us. Thank you very much.

Ladies and gentlemen, that concludes our briefing for today. Once again, thank you for joining us and I wish you a very good evening ahead.