Date: 1st October 2024
Broker: UOB Kay Hian

Market Performance

CIMB Group is rated as a “Buy” with a target price of RM8.12, while its current trading price is RM8.05. The bank has achieved a remarkable year-to-date increase of 37.8% and a year-over-year change of 49.1%, showcasing significant recovery and growth.

Earnings and Growth Potential

The earnings outlook for CIMB Group is promising, with an expected growth of 10.8% for 2024. This growth potential is in line with the bank’s strategic initiatives aimed at enhancing its operational efficiency and expanding its market presence.

Asset Quality

CIMB Group has demonstrated a stable asset quality profile, maintaining a low gross impaired loans (GIL) ratio. This stability is indicative of the bank’s effective risk management practices and its ability to navigate through potential economic challenges.

Strategic Positioning

The bank is well-positioned to capitalize on the favorable macroeconomic conditions and liquidity factors in the banking sector. With a strong balance sheet and a focus on sustainable growth, CIMB Group aims to enhance shareholder value.

Sector Context

In the context of the Malaysian banking sector, CIMB Group is seen as a key player with robust performance metrics. The bank’s valuation reflects a competitive price-to-book ratio, making it an attractive investment option for those looking to engage in the banking sector.

Analyst Coverage

The analysis is provided by Keith Wee Teck Keong from UOB Kay Hian, who highlights CIMB Group’s strong market position and growth trajectory amidst a recovering economic landscape.