CIMB Group Holdings Berhad, commonly known as CIMB, is a leading Malaysian banking group. Incorporated in Malaysia in 1974, CIMB has grown into a regional powerhouse with operations across Southeast Asia.
CIMB offers a comprehensive range of financial products and services, including investment banking, consumer banking, Islamic banking, Islamic investment banking, asset management, and private banking.
CIMB boasts a significant domestic presence in Malaysia and a growing international footprint. The group has expanded its operations into neighbouring countries like Singapore, Indonesia, Thailand, Cambodia, and Vietnam, while CIMB Bank has branches in London, Hong Kong and Shanghai.
CIMB’s shares are listed on the Bursa Malaysia Securities Berhad under the ticker code CIMB.
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CIMB Group EPS and Revenue Breakdown 2020-2023
| Source: TradingView | Annual EPS | Annual Revenue |
|---|---|---|
| 2020 | MYR 0.12 | MYR 17.19 billion |
| 2021 | MYR 0.43 | MYR 18.42 billion |
| 2022 | MYR 0.52 | MYR 19.83 billion |
| 2023 | MYR 0.65 | MYR 21.01 billion |
Dividend & Industry Comparison
CIMB Group Share Price, Chart & Dividend Yield
At the time of writing (July 2024), CIMB Group shares have had a substantial bull run after hitting significant lows in October 2020. The stock is currently trading at levels last seen in April/May 2018, with the current momentum completely to the upside.
Dividend Yield: 5.03%
YOUR CAPITAL IS AT RISK
CIMB Group Share Price Forecast
Data compiled by TradingView shows that out of 19 investment analysts covering CIMB, 16 have a Buy rating on the stock, with three assigning it a Hold rating. Here are the bull case and hold arguments for the stock:
The Bull Argument: In a note following its most recent earnings release, analysts at TA said CIMB “remains backed by a decent capital position with a Common Equity Tier 1 (CET1) Capital Ratio and Total Capital Ratio of 15.0% and 18.7%, respectively.” In addition, the firm stated: “Looking ahead, while management remains cautious due to global economic uncertainties and rising geopolitical tensions, they will continue to drive NII through NIM management, enhance NOII, strengthen the deposit and CASA franchise, maintain asset quality, and focus on digital and operational resilience,” concluded the analysts.
The Neutral Argument: One firm assigning CIMB with a Hold rating is Hong Leong Investment Bank (HLIB). the firm downgraded the stock to Hold back in July 2023, telling investors the re-rating is based on potentially stunted financial performance quarter-on-quarter following higher net credit costs. “Following our upgrade in June [2023], CIMB’s share price has rallied 13% and hence, we now find that the risk-reward profile of the stock to be more balance,” an HLIB analyst stated.
Average Analyst Consensus 12-Month Price Target: MYR 6.77
Who Should Buy CIMB Group Shares
CIMB Group Holdings Berhad offers a compelling proposition for various investors, but assessing your investment goals and how they align with the company’s is crucial. Here are some investor profiles that might be better suited to owning CIMB shares:
Exposure to the Southeast Asian Growth Story: Investors seeking exposure to the burgeoning economies of Southeast Asia could find CIMB a strategic investment. The company’s strong regional presence positions them to capitalise on the increasing demand for financial services across the region.
Diversified Financial Services Play: Investors seeking a diversified financial services company can benefit from CIMB’s comprehensive suite of offerings. This includes investment banking, consumer banking, Islamic banking, asset management, and private banking.
Dividend-Seeking Investors with a Growth Outlook: CIMB has a history of distributing dividends to shareholders. Combined with the company’s growth potential in Southeast Asia, this can be attractive to income-oriented investors with a long-term perspective.
Value Investors Seeking Efficiency: Investors seeking value might find CIMB’s strong domestic market share and established presence appealing. Additionally, the company’s focus on innovation and technological advancements suggests potential for operational efficiency gains, which can contribute to long-term value creation.
Investors Focused on Fintech: CIMB’s commitment to digitalisation and fintech initiatives might be attractive to investors. The company is actively developing and integrating new technologies to enhance its services and cater to a tech-savvy customer base.
