Wednesday, May 9, 2012

CIMB Group Holdings: Maintain SELL - A 60% Stake In BOC For MYR881m

No material impact. The acquisition of Bank of Commerce (BOC), Philippines expands CIMB's presence into one of the most under-banked markets in the region (loans/GDP of just 30%). There is no material impact to financials in the medium term; however, as the 16th largest bank in the country, there is much competition ahead. Our forecasts for CIMB Group are maintained along with our Sell call and MYR6.80 TP (P/BV target of 1.9x, 2012 ROE: 16.1%).

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Source: Maybank Research - 9 May 2012

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