February 28, 2012

CIMB Group Holdings (FY11 Results): Within expectations

Stock Name: CIMB
Company Name: CIMB GROUP HOLDINGS BERHAD
Research House: ECMLIBRAPrice Call: HOLDTarget Price: 7.00




Maintain HOLD, TP: RM7.00

FY11 results were within market expectations. EPS growth of 11% came in 2% above consensus. PBT before provisions was up only 4% y-o-y despite a 14% growth in loans, as net interest margins fell and non-interest income was down 5% y-o-y. FY11 DPR was 41%, the lower end of its 40-60% KPI. Our EPS forecasts have been adjusted marginally, hence we are retaining our target price and HOLD recommendation. (refer to report for details)


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