KUALA LUMPUR, April 28 (Bernama) -- CIMB Group Holdings Bhd was higher at midday after it’s 92.5 per cent indirectly held Indonesian subsidiary PT Bank CIMB Niaga Tbk reported a robust net profit for the first quarter of financial year 2023 (1Q FY2023).
At lunch break, CIMB rose one sen to RM5.08, with 1.36 million shares transacted.
Public Investment Bank Bhd said the robust results were incidentally CIMB Niaga’s highest quarter on record, on the back of strong interest income growth {+16.9 per cent year-on-year (yoy), +5.3 per cent quarter-on-quarter (qoq)} and notably lower loan loss provisions (-34.2 per cent yoy, -25.0 per cent qoq).
“The bank remains well placed to weather growing economic uncertainties, underpinned by further improvements in its efficiency and productivity, and improving traction from its portfolio mix optimisation.
“With Indonesia’s post-Covid economic recovery gaining a greater foothold, we remain enthused over CIMB Niaga (and the group’s) longer-term prospects, underpinned by its FY2023 strategic initiatives,” the research firm said in a note today.
Therefore, Public Investment said it maintained its ‘Outperform’ call with an unchanged target price of RM6.70.
-- BERNAMA
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