Share Price: RM7.80 | Target Price: RM9.20 | Rating: Buy
To recap, Forward23+ aimed to reshape its portfolio and lower costs. In addition, management embraced a profitability first growth model instead of pursuing asset expansion aggressively. Back then, the 2024 aspiration was to achieve: (i) 11.5 12.5% ROE, (ii) <45% CIR, (iii) 50-60bp NCC, and (iv) >13.5% CET1. Overall, we find CIMB executed its overall business strategies effectively, looking at its recent financial results, where it posted an impressive 11.2% ROE and 14.6% CET1; these are higher vs 2019’s level of 9.3% and 12.9% respectively.
CIMB Results Update for Q4 Ending 31/12/24
Research House: Hong Leong Investment Bank (AHIB)
Analyst: Chan Jit Hoong
FY2025 Forecast: Net Profit: RM8,001m | EPS: RM0.75 | DPS: RM0.488