CIMB Group Holdings (CIMB) showcased a stable financial performance and positive outlook for CIMB Niaga in its latest results, according to reports by Kenanga Investment Bank (Kenanga), Maybank Investment Bank (Maybank), and MIDF Amanah Investment Bank (MIDF).
CIMB Niaga's 2Q24 net profit met expectations with a 4% year-on-year (YoY) increase and a 3% quarter-on-quarter (QoQ) rise, driven by reduced credit costs despite lower net interest margins (NIM). The bank reported a stable asset quality and robust non-interest income (NOII), while maintaining its strong dividend yield and regional diversification benefits.
Kenanga has maintained an OUTPERFORM rating on CIMB Group Holdings with an unchanged target price of RM7.60, highlighting the bank's effective asset quality management and regional exposure benefits.
Similarly, Maybank reiterated its BUY call with a target price of RM7.70, emphasising CIMB's solid performance amidst pressures on NIM and lower credit costs.
MIDF also supports a BUY rating with a target price of RM8.12, citing a stable outlook and continued potential for high returns despite some expected weaknesses in loan yields. MIDF's report points to robust dividend yields and a high return on equity (ROE) as key positives, while acknowledging potential challenges from ongoing cost pressures.
The positive ratings from Kenanga, Maybank, and MIDF underline the bank's solid fundamentals and growth prospects, making it a compelling investment option in the current financial landscape.