Stock Name: CIMB
Company Name: CIMB GROUP HOLDINGS BERHAD
Research House: OSK
Company Name: CIMB GROUP HOLDINGS BERHAD
Research House: OSK
KUALA LUMPUR: OSK Research is trimming CIMB Group's financial year 2011 and 2012 earnings estimates by 4.8 per cent and 5.1 per cent respectively, after factoring in the exceptionally weak forex income in the first quarter performance.
In a note today, the research firm said the slight downward adjustment in earnings amid the first quarter annualised numbers coming in below estimates, centers on expectations of a stronger second half driven by domestic net interest margins stabilisation.
"It is likely to take effect from May onwards from the recent interest rate hike and further strengthening in the second half on the back of further probable rate hikes.
"This includes the expected flow through of the government's various economic transformation projects financing in the form of higher margin bridging loans and fee income from bond origination as well as a pick-up in mandated initial public offerings (IPOs) such as the recently announced flotation of
Bumi Armada," it added.
The group posted a higher pre-tax profit of RM1.23 billion in the first quarter ended March 31, 2011, compared to RM1.13 billion in the same period last year.
However, revenue decreased to RM2.75 billion from RM2.79 billion previously due to lower non-interest income, CIMB Group said an announcement to Bursa Malaysia today.
Its earning per share rose to 12.33 sen from 11.86 sen. - Bernama
In a note today, the research firm said the slight downward adjustment in earnings amid the first quarter annualised numbers coming in below estimates, centers on expectations of a stronger second half driven by domestic net interest margins stabilisation.
"It is likely to take effect from May onwards from the recent interest rate hike and further strengthening in the second half on the back of further probable rate hikes.
"This includes the expected flow through of the government's various economic transformation projects financing in the form of higher margin bridging loans and fee income from bond origination as well as a pick-up in mandated initial public offerings (IPOs) such as the recently announced flotation of
Bumi Armada," it added.
The group posted a higher pre-tax profit of RM1.23 billion in the first quarter ended March 31, 2011, compared to RM1.13 billion in the same period last year.
However, revenue decreased to RM2.75 billion from RM2.79 billion previously due to lower non-interest income, CIMB Group said an announcement to Bursa Malaysia today.
Its earning per share rose to 12.33 sen from 11.86 sen. - Bernama
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