CIMB Group Holdings: Maintain Sell - No Major Surprises In 2Q12

• Earnings in line. CIMB's 2Q12 net profit of MYR1.1b (+14% YoY, +10% QoQ) was within our and consensus expectations. A decent set of results, but operating profit was flat QoQ.
• With approximately 30% of pretax profit driven by its investment banking and treasury divisions, CIMB's earnings remain susceptible to capital market volatility, and we continue to expect its valuations to converge towards those of its conventional banking peers.
• We maintain our SELL call but raise TP to MYR7.20 from MYR6.80 alongside higher peer valuations (FY12 P/BV of 1.9x vs. 1.8x previously, ROE: 15.7%).

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Source: Maybank Research - 16 August 2012