(CIMB MK/HOLD/RM6.56/Target: RM6.20)

Post meeting with management yesterday, our earnings outlook for the group remains intact apart from potentially higher-than-expected provisions at CIMB Niaga partially offset by lower-than-expected NIM compression at CIMB Niaga. Maintain HOLD and target price of RM6.20 (1.13x 2017F P/B, 9.9% ROE). We believe that much of the group’s strong earnings recovery has been priced in as reflected in our 30% 2017 earnings growth assumption. Entry level: RM5.70.

Source: UOB Kay Hian Research - 3 Aug 2017