KUALA LUMPUR: Maybank Investment Bank (Maybank IB) has raised CIMB Group Holdings Bhd’s 2023 financial year (FY2023) to 2025 estimates (2025E) earnings by two per cent to factor in higher non-interest (NOII) income, as well as a dividend payout ratio to 55 per cent from 50 per cent previously.
"Correspondingly, we now expect a higher return on equity (ROE) of 9.8 per cent/10 per cent for FY2023 and 2024E, respectively, versus 9.6 per cent/9.8 per cent before.”
"Even so, our ROE forecast trails management’s target of 10.2-11 per cent this year and 11.5-12 per cent for FY2024,” it said in its research note today.
CIMB registered a better net profit of RM1.77 billion in the second quarter (2Q) ended June 30, 2023, from RM1.28 billion a year earlier on the back of strong NOII improvement.
Revenue went up to RM5.33 billion from RM4.88 billion previously.
Following this, the bank announced an interim dividend of 17.5 sen per share, representing a payout ratio of 55 per cent amid the group’s strong capital, funding and liquidity positions.
"The group has a dividend payout policy of 40-60 per cent, which raises the possibility of the payout hitting 60 per cent, in our view, given that management is looking to manage its ROE upwards,” Maybank IB said. - Bernama