AmInvest Research retains Hold on CIMB, FV RM3.10

CIMB Group management provided a briefing last Friday on the refined group strategy known as Forward 23+

KUALA LUMPUR: AmInvestment Research maintained its Hold call on CIMB Group Holdings (CIMB) with an unchanged fair value of RM3.10 a share based on a FY21 return on equity (ROE) of 4.9%, leading to a price-to-book value (P/BV) of 0.5 times.

“Management provided a briefing last Friday on the refined group strategy known as Forward 23+. Despite its ranking as the 5th largest Asean universal bank by asset, the 2nd and 6th largest in Malaysia and Indonesia respectively, the group still lags its peers in terms of ROE. CIMB’s ROE plummeted to 8.5% in 2019 from 15.0% in 2009, ” the research house said.