CIMB exits Thai auto financing in strategic shift under Forward30 plan
CIMB Group has agreed to sell its Thai unitās auto financing portfolio to Krungsri. The deal marks a key step in the bankās strategy to exit non-core operations and refocus its investments. The sale aligns with CIMBās broader transformation plans for its Thai business. The portfolio will be transferred to Bank of Ayudhya Public Company Limited and its subsidiary, known collectively as Krungsri. The transaction is set at a modest premium above the adjusted net book value. CIMB has already factored the sale and its one-off costs into its 2026 financial targets.
The move is part of CIMBās Forward30 strategy, which aims to streamline operations and reallocate capital across its ASEAN network. Novan Amirudin, Group CEO of CIMB, explained that the restructuring strengthens CIMB Thaiās competitiveness while freeing up resources for priority growth areas. He also noted that Thailand remains a key market for the groupās regional platform.
CIMB Thaiās wider transformation includes changes to its operating model, branch optimisation, and cost reductions. The bank is also rebalancing its portfolio and shifting focus towards wealth management and regional wholesale banking. Over the medium term, these changes are expected to push CIMB Thaiās return on equity into double-digit territory.
Despite the sale, CIMB Thai will continue supporting cross-border corporate banking, affluent banking, and intra-ASEAN trade flows. The unit will maintain its role in connecting regional clients within the groupās network. The transaction reinforces CIMBās commitment to refining its business focus under the Forward30 plan. With capital redeployed to high-priority areas, the group aims to strengthen its position in key ASEAN markets. CIMB Thaiās ongoing transformation is set to improve efficiency and profitability in the coming years.
