KUALA LUMPUR: CIMB Group Holdings Bhd's 9M18 net profit of RM4.47bil, up 30.8% year-on-year, came in within expectations, said Affin Hwang Capital research.
The banking group's earnings were bolstered by asset disposal gains totalling RM1.1bil, lower overheads and lower impaired loan allowances.
Core net profit of RM3.54bil was 3.6% higher year-on-year due to operationally, fund-based income falling as a result of the weak Indonesian operations.
"Consumer banking (accounting for 49% of 9M18 group PBT) saw a strong 23% yoy jump in PBT, while commercial banking (10% of group PBT) saw a 69% jump in PBT due to business recalibration. The wholesale banking unit was affected by weaker capital markets returns and higher provisions," said Affin Hwang.
The research house maintained hold with an unchanged target price of RM6.10.
"Our view remains unchanged – we anticipate a moderation in business activities in Indonesia in 4Q18 and 1H19 prior to the general election (to be held in April 2019).
"On the domestic front, more business-friendly policies and government agendas to improve the overall welfare of the peole should continue to boost positive sentiment in the country," said Affin Hwang.