KUALA LUMPUR: Maybank Investment Bank (Maybank IB) has raised CIMB Group Holdings Bhd
’s 2023 financial year (FY2023) to 2025 estimates (2025E) earnings by two per cent to factor in higher non-interest (NOII) income, as well as a dividend payout ratio to 55 per cent from 50 per cent previously.
"Correspondingly, we now expect a higher return on equity (ROE) of 9.8 per cent/10 per cent for FY2023 and 2024E, respectively, versus 9.6 per cent/9.8 per cent before.”
"Even so, our ROE forecast trails management’s target of 10.2-11 per cent this year and 11.5-12 per cent for FY2024,” it said in its research note today.
CIMB registered a better net profit of RM1.77 billion in the second quarter (2Q) ended June 30, 2023, from RM1.28 billion a year earlier on the back of strong NOII improvement.
...