CIMB's Share Price Up At Mid-morning Ahead Of Upcoming 2Q2024 Results

KUALA LUMPUR, July 30 (Bernama) -- CIMB Group Holdings Bhd's (CIMB) share price was up at mid-morning ahead of the announcement of its second quarter of 2024 (2Q 2024) results on Aug 30. 

At 11 am, CIMB increased 1.0 sen to RM7.25 with 3.44 million shares traded.

In a note today, Maybank Investment Bank Bhd said CIMB Group’s financial performance to-date appears to be trending towards its return on equity (ROE) target of 11-11.5 per cent for the year.

“Another special dividend could further boost sentiment towards the stock.

“We maintain a 'buy' call on CIMB’s shares and our target price (TP) of RM7.70 per share pending the release of its 2Q 2024 results on Aug 30, supported by an FY2024 estimate dividend yield of 5.4 per cent," it said. 

In a separate note, RHB Investment Bank Bhd (RHB IB) also maintained its ‘buy’ call on the banking group’s shares with a new TP of RM8 per share, noting that CIMB’s results for the first half of 2024 should meet expectations, with ROE tracking the 11-15 per cent guidance.

"CIMB is a sector-preferred pick. Its focus on profitable growth is helping drive ROEs higher amid robust capital generation.

“Investors are likely to be well rewarded with a re-rating in valuations and higher capital returns,” it added.

Meanwhile, MIDF Amanah Investment Bank Bhd (MIDF) said CIMB will begin union negotiations in 2Q FY2024, (collective agreement adjustments for FY2024, FY2025 and FY2026) -- hence it expects a spike in cost starting this quarter.

“However, we do not expect any lumpy one-off costs – management will space this evenly," it said, maintaining its forecast on CIMB’s earnings and its 'buy' call on CIMB’s shares with a revised TP of RM 8.12 per share.

MIDF noted that downside risks to its call include poor non-interest income performance; weaker-than-expected net interest margin performance; and weak loan growth.

-- BERNAMA