KUALA LUMPUR, Aug 31 — Maybank Investment Bank has raised CIMB Group Holdings Bhd’s 2023 financial year to 2025 estimates earnings by two per cent to factor in higher non-interest income, as well as a dividend payout ratio to 55 per cent from 50 per cent previously.
“Correspondingly, we now expect a higher return on equity of 9.8 per cent/10 per cent for FY2023 and 2024E, respectively, versus 9.6 per cent/9.8 per cent before.” “Even so, our ROE forecast trails management’s target of 10.2-11 per cent this year and 11.5-12 per cent for FY2024,” it said in its research note today.
CIMB registered a better net profit of RM1.77 billion in the second quarter ended June 30, 2023, from RM1.28 billion a year earlier on the back of strong NOII improvement.Following this, the bank announced an interim dividend of 17.5 sen per share, representing a payout ratio of 55 per cent amid the group’s strong capital, funding and liquidity positions.
“The group has a dividend payout policy of 40-60 per cent, which raises the possibility of the payout hitting 60 per cent, in our view, given that management is looking to manage its ROE upwards,” Maybank IB said. — Bernama