MaybankIB maintains 'buy' call on CIMB

Date: 12/12/2018

Source  :  MAYBANK
Stock  :  CIMB       Price Target  :  6.70      |      Price Call  :  BUY
        Last Price  :  5.28      |      Upside/Downside  :  +1.42 (26.89%)

KUALA LUMPUR, Dec 12 (Bernama) – Maybank IB Research has maintained its “buy” call on CIMB Group Holdings Bhd, while projecting the bank to record a faster earnings growth of 11 per cent into financial year (FY) 2019.
The better projection was on the back of more stable net interest margin (NIMs) and credit costs, leading to a recovery in return on average equity (ROAE) to 10 per cent from 9.4 per cent, excluding one-offs, in FY 2018.
A prospective FY19 dividend yield of 5.5 per cent provides support.
“We project net profit growth of six per cent in FY18 and 11 per cent in FY19, riding on more stable NIMs and credit costs into next year,” the research house said in a note today.
Maybank IB has kept the target price for CIMB at RM6.70 per share.
On loan growth, it expect CIMB’s domestic loan growth to be at 10.5 per cent and 6.5 per cent in FY18 and FY19 respectively, while overall loan growth is estimated to be a lower 6.8 per cent and 5.1 per cent.
As at 10.08 am, CIMB shares on Bursa Malaysia rose 14 sen to RM5.65 with 1.21 million shares changing hands.
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Labels: CIMB

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