Stock Name: CIMB
Company Name: CIMB GROUP HOLDINGS BERHAD
Research House: HWANGDBS
Company Name: CIMB GROUP HOLDINGS BERHAD
Research House: HWANGDBS
CIMB Group Holdings Bhd will continue to ride on its strength and is poised for stronger momentum this year by leveraging on capital markets and the spillover effect from the Economic Transformation Plan, said a research house.
HwangDBS Vickers Research Sdn Bhd said loans growth would be broad-based, but with a bias towards corporate loans while net interest margin (NIM) was likely to narrow due to competition in the Indonesian and Malaysian consumer business.
The bank's key targets for the year are 17 per cent return on equity (ROE), 18 per cent loan growth, 20 per cent deposit growth and 40 basis points provision charge-off rate, it said in a research note today.
"We nudged down 2011 and 2012 financial year earnings by five per cent after imputing the financial year 2010 numbers. Our loans and deposit growth assumptions were raised, but NIM was cut to account for further competition," the research house said.
HwangDBS Vickers Research maintained a "buy" recommendation on CIMB with a target price of RM10.10 with 19 per cent ROE, seven per cent long-term growth rate and 11 per cent cost of equity.
"We assume 50-52 per cent dividend payout ratio for 2011 to 2013 financial years which is within CIMB''s dividend policy," it said.
At 4pm, CIMB was down eight sen at RM7.99 on Bursa Malaysia Securities. -- Bernama
HwangDBS Vickers Research Sdn Bhd said loans growth would be broad-based, but with a bias towards corporate loans while net interest margin (NIM) was likely to narrow due to competition in the Indonesian and Malaysian consumer business.
The bank's key targets for the year are 17 per cent return on equity (ROE), 18 per cent loan growth, 20 per cent deposit growth and 40 basis points provision charge-off rate, it said in a research note today.
"We nudged down 2011 and 2012 financial year earnings by five per cent after imputing the financial year 2010 numbers. Our loans and deposit growth assumptions were raised, but NIM was cut to account for further competition," the research house said.
HwangDBS Vickers Research maintained a "buy" recommendation on CIMB with a target price of RM10.10 with 19 per cent ROE, seven per cent long-term growth rate and 11 per cent cost of equity.
"We assume 50-52 per cent dividend payout ratio for 2011 to 2013 financial years which is within CIMB''s dividend policy," it said.
At 4pm, CIMB was down eight sen at RM7.99 on Bursa Malaysia Securities. -- Bernama
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