(CIMB MK/HOLD/RM5.48/Target: RM5.60)

After our meeting with management yesterday, our overall earnings outlook for the group remains generally intact. However, we now expect loans growth to be slower at CIMB Niaga vs our previous expectation. This would be partially offset by lower NIM compression from CIMB Niaga. Maintain HOLD and target price of RM5.60 (1.0x 2017F P/B, 9.2% ROE). Entry level: RM5.10. Much of the group’s strong earnings recovery has been factored in as reflected by our 2017 earnings growth assumption

Source: UOB Kay Hian Research - 20 Apr 2017