Friday, April 27, 2012

CIMB Group Holdings: Maintain Sell - CIMB Niaga: Boost from Treasury Gains

Sell maintained. CIMB Niaga's 1Q12 results were above our expectations, coming in at 27% of our full-year forecast. To a large extent, results were bolstered by strong treasury gains during the period and while partially offset by higher levels of provisioning, we do not expect these gains to be sustainable. Our forecasts for both the bank and CIMB Group are maintained, as is our Sell call and MYR6.80 TP on CIMBGroup (P/BV of 1.9x, 2012 ROE: 16.1%).

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Source: Maybank Research - 27 April 2012

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