Maybank IB raises CIMB's earnings after above expectations 2Q results

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

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

CIMB , Dividend , ROE , Maybank IB


Next In Business News

Renewable energy use on the rise in China
Oil prices rise as US crude, fuel inventories seen shrinking
Maybank reassures systems remain secure amid alleged database leakage claims
BNP Paribas beats estimates as trading revenues jump
Asian stocks waver after tech earnings, yen at seven-week high
Deutsche Bank's profit streak ends with big lawsuit provision
Gross fixed capital formation recorded at RM314.8bil in 2023 - DoSM
SC urges consistent high-quality audits for public interest entities
Selling restarts on Bursa, FBM KLCI drops 7pts
GHL Systems' shares to be suspended on July 31

Others Also Read