Company Coverage
CIMB Group (CIMB MK): 2Q26: Resilient Showing Despite Forex And NIM Headwinds
BUY (Maintained)
Current price:
Target price:
Upside:
RM7.96
RM9.30
+22.3%
Analyst
Highlights
2Q26 earnings are in line (+3% yoy, +1% qoq), supported by strong non interest income growth and solid cost discipline.
Healthy asset growth, strong non-interest income and solid cost discipline helped cushion the weaker-than-expected NIM trend.
Maintain BUY and target price of RM9.30 (1.28x 2026F P/B, 11.7% ROE). The stock offers a lush dividend yield of 6.5% for 2026.
Analysis
In line. CIMB Group (CIMB) reported 2Q26 net profit of RM1.92b (+3% yoy, +1% qoq), bringing 1H26 earnings to RM3.87b (flattish yoy). We deem the results broadly in line, at 47%/48% of our/consensus full-year forecasts respectively, and expect earnings to be stronger hoh in 2H26, driven by continued non-interest income momentum, normalisation in credit costs at CIMB Niaga and positive forex translation from regional currencies strengthening against the ringgit. Overall, healthy asset growth, strong non interest income and solid cost discipline helped cushion the weaker-than expected NIM trend in 2Q26.
Displays solid growth traction ex-forex impact. Reported earnings were weighed by negative forex translation from the stronger ringgit against regional currencies. On a constant-currency basis, however, 2Q26 earnings growth accelerated to 7.3% yoy (1Q26: +1.7%), bringing 1H26 growth to 4.5% yoy, despite a sharp 10bp yoy compression in 1H26 NIM. Growth was supported by strong non-interest income (+8% yoy, +7% qoq) and continued cost discipline, with opex declining 1% yoy, partly offset by higher provisions and NIM compression.
Highlights
2Q26 earnings are in line (+3% yoy, +1% qoq), supported by strong non interest income growth and solid cost discipline.
Healthy asset growth, strong non-interest income and solid cost discipline helped cushion the weaker-than-expected NIM trend.
Maintain BUY and target price of RM9.30 (1.28x 2026F P/B, 11.7% ROE). The stock offers a lush dividend yield of 6.5% for 2026.
Analysis
In line. CIMB Group (CIMB) reported 2Q26 net profit of RM1.92b (+3% yoy, +1% qoq), bringing 1H26 earnings to RM3.87b (flattish yoy). We deem the results broadly in line, at 47%/48% of our/consensus full-year forecasts respectively, and expect earnings to be stronger hoh in 2H26, driven by continued non-interest income momentum, normalisation in credit costs at CIMB Niaga and positive forex translation from regional currencies strengthening against the ringgit. Overall, healthy asset growth, strong non interest income and solid cost discipline helped cushion the weaker-than expected NIM trend in 2Q26.
Displays solid growth traction ex-forex impact. Reported earnings were weighed by negative forex translation from the stronger ringgit against regional currencies. On a constant-currency basis, however, 2Q26 earnings growth accelerated to 7.3% yoy (1Q26: +1.7%), bringing 1H26 growth to 4.5% yoy, despite a sharp 10bp yoy compression in 1H26 NIM. Growth was supported by strong non-interest income (+8% yoy, +7% qoq) and continued cost discipline, with opex declining 1% yoy, partly offset by higher provisions and NIM compression.
BUY (Maintained)
Current price:
Target price:
Upside:
RM7.96
RM9.30
+22.3%
Analyst
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