CIMB Group (CIMB)’s 1QFY25 net profit rose 1.9% YoY to RM1.97bn, driven by stable loans growth (4.4% YoY) despite a slight contraction of 3bps in net interest margin (NIM). NIM compression was mainly coming from Singapore, Indonesia and Thailand. Results were in-line with our and consensus estimates, accounting for 24% and 25% respectively. We make no changes to our earnings forecast. We continue to favour CIMB on attractive valuation, trading at 0.9x FY26F P/B and an attractive dividend yield of >6%. We maintain our Outperform call on CIMB with a lower TP of RM8.40 as we raise our cost of equity assumption to 9%, due to concerns over its operations in Singapore and Indonesia (rate cuts and unfavourable forex). No dividend was declared for the quarter.