(CIMB MK/HOLD/RM4.82/Target: RM5.00)

We attended a group meeting yesterday, where management largely retained its immediate-term to medium-term targets and outlook (10% ROE). Management had guided for further provision clean-ups in 4Q16 and expects a more material improvement in overall group provisions only in 2H17. As such, we retain our HOLD recommendation and target price of RM5.00 (0.95x 2017F P/B) and expect the stock price to fluctuate within a tight trading range. Entry level: RM4.60.

Source: UOB Kay Hian Research - 17 Jan 2017