CIMB

[winston]

not vested

Improved operating efficiency

CIMB’s 1H25 net profit was below our expectation (46.2% of our full-year forecast) due to lower-than-expected net and non-interest income.

We expect CIMB’s net profit to increase by 2.5% yoy in 2H25F, due to the improvement in loan growth but partly offset by NIM compression.

Reiterate Add on CIMB premised on our projections for a recovery in its loan growth in 2H25F and improvement in operating efficiency.

TP: RM 8.60

Source: CGS

https://rfs.cgsi.com/api/download?file= ... 44388928A1

[winston]

not vested

1023 CIMB (BUY)
Rising dividend tide

CIMB’s 9M25 revenue and earnings growth were broadly flattish, reflecting macro headwinds and a challenging rates backdrop.

NIM trended lower, though a breather is anticipated in 1H26, supported by proactive repricing measures amid a stabilising rate environment.

The easing GIL ratio underscored resilient asset quality.

CIMB has committed to an additional RM2bn capital return plan via special dividends to be distributed over the next three years.

As a result, while earnings forecasts are maintained, we raised our dividend payout assumptions to 65% for FY25–27f.

Overall, we continue to like CIMB for being the cheapest large-cap bank with a compelling dividend yield of >6% under our coverage.

Maintain BUY call and GGM-TP of RM8.80, based on 1.27x FY26 P/B.

Source: HLIB

[winston]

not vested

3Q25 results marginally above, special DPS of 7sen

Upgrade to BUY CIMB’s 9M25 earnings were marginally above expectations and our FY2527E earnings forecasts are raised by 2% each year for lower credit costs.

Our valuations are rolled forward to FY26 and raised to MYR8.60 from MYR7.60 (FY26E PBV of 1.2x, COE: 9.9%, g: 4%, ROE: 11.3%).

With the 7sen special DPS, dividend yields are >6%. Upgrade to BUY.

Target: RM 8.60

https://mkefactsettd.maybank-ke.com/PDFS/502041.pdf

[winston]

not vested

Ka-ching! 7 sen special dividend declared

CIMB’s 9M25 net profit was within expectations, accounting for circa 76% of our full-year forecast and Bloomberg consensus estimate.

CIMB is committed to returning RM2bn of its capital to shareholders until 2027F and, with this, it declared a special DPS of 7 sen for FY25.

Reiterate Add on CIMB premised on our expected improvement in net interest margin in FY26F and its capital management initiatives.

TP: 8.90

Source: CGS

https://rfs.cgsi.com/api/download?file= ... 1A8A13E95E

[winston]

vested

CIMB Investment Bank, 11 others hit with RM1.38b suit from MEX II sukuk holders

By Izzul Ikram

Not new news. This was already highlighted in The Edge Weekly on 20th Dec.

More importantly, it is a non-event for CIMB (TP: RM9.20; Buy); if the RM1.38bn potential damage were apportioned equally across the 12 defendants, the earnings impact would be <2%, which is immaterial. As such, our investment thesis remains intact:

* Most inexpensive large-cap bank under our coverage, from both P/E and P/B standpoint, trading at 10.6x and 1.16x respectively

* Commitment to capital management ensures dividend yield remains attractive at >6%

* Foreign shareholding has eased to 31% from its 1-year peak of 36% and we reckon it will be a prime beneficiary of foreign investors returning

Source: The Edge

https://theedgemalaysia.com/node/788121