Maybank IB says its forecast on CIMB’s FY22 financial result came in within expectation, the FY23E ROE estimate of 10.3% is within management’s guidance of 10.2-11%.
However, the research house is trimming its TP for the banking group by 20sen to MYR6.60, tagging on a FY23E PBV of 1.0x. Within expectations, CIMB’s 4Q22 core net profit of MYR1.33b (+63% YoY, -6% QoQ) contributed to FY22 core net profit of MYR5.44b (+17% YoY). The results were within expectations and consensus. CIMB proposed a second interim DPS of 13sen on an all-cash basis, instead of on a dividend reinvestment plan (DRP). Given the group’s adequate capital, Maybank IB expects foreseeable dividend payments to be on an all-cash basis, as management seeks to maximize ROEs. Targets for FY23 Management guides for loan growth of 5-6% for FY23 (FY22: 7.7%; MIBG: 5.1%), NIM compression of 5-10bps (FY22: +6bps; MIBG:-8bps), credit cost of 45-55bps (FY22: 51bps; MIBG: 50bps), cost/income ratio <46.5% (FY22: 46.5%; MIBG 46.4%) and ROE of 10.2-11% (FY22: 10.2%; MIBG: 10.3%)
Forecasts maintained, having factored a credit cost assumption of 50bps in FY23E and 40bps in FY24E have imputed a dividend payout ratio of 50% moving forward, translating to a decent dividend yield of >5%
