CIMB remains an attractive defensive play
PETALING JAYA: CIMB Group Holdings Bhd continues to be a favoured banking stock following the within-expectations financial performance of its Indonesian subsidiary, PT Bank CIMB Niaga Tbk, which released its financial results for the second quarter ended June 30 (2Q) on Wednesday.
Hong Leong Investment Bank (HLIB) Research said CIMB Niaga's 1.4% growth in net profit for the first half of financial year ending Dec 31, 2025 (1H25) compared to 1H24 was within expectations and accounted for 49% of both its and the market's full-year forecasts.
CIMB Niaga contributes around 20% to 25% of CIMB Group's pre-tax profit.
The research house has maintained a 'buy' call on CIMB with an unchanged target price (TP) of RM8.80.
Noting that the risk-reward profile for the stock skews favourable, it said CIMB remains the least expensive banking stock in its coverage, trading at an attractive 0.91 times financial year 2026 (FY26) price-to-book while offering a solid 6% dividend yield.
TA Research noted that CIMB Niaga continues to demonstrate strong cost discipline in 1H25, with a controlled increase in personnel expenses, up 3.6% in 2Q compared to the same quarter a year ago and 4.3% reduction in other expenses.
There was broad-based loan growth led by auto loans as well as unsecured loans and loans to small medium enterprises. Deposit growth was also strong, driven by current and savings accounts.
It has reiterated a 'buy' call on parent CIMB with an unchanged TP of RM8.86 pending the release of its 2Q results soon.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Sun
an hour ago
- The Sun
Ringgit strengthens vs US dollar amid US rate cut speculation
KUALA LUMPUR: The ringgit extended its gains to open higher against the US dollar today, as investor sentiment on risk assets rebounded amid talk of a possible United States (US) interest rate cut, an economist said. At 8 am, the local note climbed to 4.2260/2395 against the greenback from yesterday's close of 4.2350/2385. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid told Bernama that the US dollar slipped further as market participants continued to digest last Friday's weak labour market data, which bolstered the odds of a rate cut. 'It appears that emerging market currencies against the US dollar are in a sweet spot, as the Federal Reserve seems poised to cut its policy rate, perhaps at an accelerated pace, to demonstrate to markets that it is on top of the situation. 'The September Federal Open Market Committee (FOMC) meeting is likely to see a 25-basis-point rate cut,' he said. Mohd Afzanizam said the ringgit is expected to linger within a range of RM4.22 to RM4.23 against the US dollar, supported by the prevailing positive sentiment. Meanwhile, the ringgit was mostly higher against other major currencies in early trade. It weakened against the Japanese yen to 2.8795/8889 from 2.8652/8677 on Monday, but strengthened against the British pound to 5.6197/6377 from 5.6296/6342, and edged higher against the euro at 4.8954/9110 from 4.8978/9018. The local unit was also mostly higher versus regional currencies. The ringgit rose against the Singapore dollar to 3.2841/2949 from Monday's close of 3.2878/2908, but slipped against the Thai baht to 13.0747/1229 from 13.0452/0616. It appreciated against the Philippine peso at 7.36/7.39 from 7.38/7.39 yesterday, and firmed against the Indonesian rupiah to 257.6/258.5 from 258.2/258.5. - Bernama
The Star
2 hours ago
- The Star
Ringgit extends gains vs US$ amid rate cut talks
KUALA LUMPUR: The ringgit extended its gains to open higher against the US dollar today, as investor sentiment on risk assets rebounded amid talk of a possible United States (US) interest rate cut, an economist said. At 8 am, the local note climbed to 4.2260/2395 against the greenback from yesterday's close of 4.2350/2385. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid told Bernama that the US dollar slipped further as market participants continued to digest last Friday's weak labour market data, which bolstered the odds of a rate cut. "It appears that emerging market currencies against the US dollar are in a sweet spot, as the Federal Reserve seems poised to cut its policy rate, perhaps at an accelerated pace, to demonstrate to markets that it is on top of the situation. "The September Federal Open Market Committee (FOMC) meeting is likely to see a 25-basis-point rate cut,' he said. Mohd Afzanizam said the ringgit is expected to linger within a range of RM4.22 to RM4.23 against the US dollar, supported by the prevailing positive sentiment. Meanwhile, the ringgit was mostly higher against other major currencies in early trade. It weakened against the Japanese yen to 2.8795/8889 from 2.8652/8677 on Monday, but strengthened against the British pound to 5.6197/6377 from 5.6296/6342, and edged higher against the euro at 4.8954/9110 from 4.8978/9018. The local unit was also mostly higher versus regional currencies. The ringgit rose against the Singapore dollar to 3.2841/2949 from Monday's close of 3.2878/2908, but slipped against the Thai baht to 13.0747/1229 from 13.0452/0616. It appreciated against the Philippine peso at 7.36/7.39 from 7.38/7.39 yesterday, and firmed against the Indonesian rupiah to 257.6/258.5 from 258.2/258.5. - Bernama
New Straits Times
2 hours ago
- New Straits Times
Ringgit extends gains vs US dollar amid US rate cut talks
KUALA LUMPUR: The ringgit extended its gains to open higher against the US dollar today, as investor sentiment on risk assets rebounded amid talk of a possible United States (US) interest rate cut, an economist said. At 8am, the local note climbed to 4.2260/2395 against the greenback from yesterday's close of 4.2350/2385. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid told Bernama that the US dollar slipped further as market participants continued to digest last Friday's weak labour market data, which bolstered the odds of a rate cut. "It appears that emerging market currencies against the US dollar are in a sweet spot, as the Federal Reserve seems poised to cut its policy rate, perhaps at an accelerated pace, to demonstrate to markets that it is on top of the situation. "The September Federal Open Market Committee (FOMC) meeting is likely to see a 25-basis-point rate cut," he said. Mohd Afzanizam said the ringgit is expected to linger within a range of RM4.22 to RM4.23 against the US dollar, supported by the prevailing positive sentiment. Meanwhile, the ringgit was mostly higher against other major currencies in early trade. It weakened against the Japanese yen to 2.8795/8889 from 2.8652/8677 on Monday, but strengthened against the British pound to 5.6197/6377 from 5.6296/6342, and edged higher against the euro at 4.8954/9110 from 4.8978/9018. The local unit was also mostly higher versus regional currencies. The ringgit rose against the Singapore dollar to 3.2841/2949 from Monday's close of 3.2878/2908, but slipped against the Thai baht to 13.0747/1229 from 13.0452/0616. It appreciated against the Philippine peso at 7.36/7.39 from 7.38/7.39 yesterday, and firmed against the Indonesian rupiah to 257.6/258.5 from 258.2/258.5. -- BERNAMA
