CIMB earnings expected to rise

PETALING JAYA: CIMB Group Holdings Bhd has the potential to post higher earnings, improve its return on equity and pay out higher dividends as it enjoys strong loan growth.

CGS International (CGSI) Research believes investors have not rightly priced in the growth prospects of CIMB’s Indonesian operations, where the banking sector is expected to enjoy a loan growth of about 11%-12% and a net interest margin (NIM) of above 5% this financial year (FY24), as compared to 4%-5% loan growth and NIM of about 2% in Malaysia.