PETALING JAYA: CGS International Research has reiterated its “add” call on CIMB Group Holdings Bhd
, premised on the potential re-rating catalysts of improved net interest margins (NIM) and potential further increase in its dividend payout ratio.
“We believe CIMB is a beneficiary of financing requirements for the construction and operation of data centres. The bank said it has approved a loan of RM1bil for data centre projects and another RM5bil is in the pipeline,” the research house told clients in a report.
The research house said, under new strategic plans to be unveiled in the first quarter of 2025, CIMB aims to improve its return on equity via increasing exposure to more profitable market segments.
CIMB said it plans to focus on defending its NIM in 2024-2025. Its NIM expanded by eight basis points in the first nine months of 2024. The research house said it was maintaining its financial year 2024 (FY24) to FY26 earnings per share forecasts and target price of RM9 for CIMB.
