Company Name: CIMB GROUP HOLDINGS BERHAD
Research House: HWANGDBS
"Based on our estimates, every 10 basis points increase in NIM will raise CIMB's 2011 financial year forecast by 4.8 per cent
"We think other banks would likely raise their BLR following CIMB's move," the research firm said in a research note today.
HwangDBS Vickers maintained its buy recommendation on CIMB with a target price of RM10.10.
CIMB Bank and CIMB Islamic Bank announced an increase in BLR and base financing rate from 6.30 per cent to 6.35 per cent.
The change in rates follows Bank Negara Malaysia's announcement to increase the statutory reserve ratio requirement by one per cent to two per cent effective April 1. -- BERNAMA