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banks valuations is a lengthy process and have to be patient, the opportunity will come. involves looking at mgmt of credit, liquidity and interest rates.
one quick way is to compare price to book of similar banks, at least you can get a first hand view on whether you are overpaying for the particular bank stock. hope this helps...
current cimb p/b is at 1.0 which is a bit low compared to few major banks. even at this level or going below it warrants further review on its assets via its earnings report. net interest income, non interest income, it's efficiency - revenue per employee, non performing loans or bad loans, and etc. some banks may focus more on credit cards as it has higher interest at times of interest rates cut.
Let's see the annual report from bank negara. should be today or tmr. whether it's dovish or hawkish. followed by PPI report from dept of statistics. still have time to dig into its assets.
interesting report from bank negara. temporary signs of repayment difficulties. Looking at CIMB annual report, the loan loss charge came down to below 0.5 for the first time since 2014. at the back of its growing revenue, net interest income came down while non interest income went up. net interest margin at 2.50 compared to few banks which is at lower range of 2.0. interesting indeed.
revenue per employee is slightly lower compared few banks by market cap. Let's see whether the previous low of 5.0 in Jul'18 can be supported. breaking this level will bring it to 4.30 to 4.80 range. hope this helps
KUALA LUMPUR: Bank Negara Malaysia (BNM) governor Datuk Nor Shamsiah Mohd Yunus says that any adjustments to the overnight policy rate (OPR) do not suggest that there are risks to domestic economic growth.
“We are not a growth-targeting central bank,” said Nor Shamsiah, stressing that the rationale of OPR cut, should there be any, is not necessarily meant for stimulating economic growth.
