{
  "id": 1417273,
  "title": "HLIB maintains 'Buy' call on CIMB, RM8.70 target",
  "url": "https://urgent.news/2026/08/17/hlib-maintains-buy-call-on-cimb-rm8-70-target",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-17T04:10:24.000Z",
  "source": {
    "name": "New Straits Times",
    "slug": "new-straits-times",
    "url": "https://www.nst.com.my/business/corporate/2026/08/1512878/hlib-maintains-buy-call-cimb-rm870-target"
  },
  "original_language": "en",
  "account": "Hong Leong Investment Bank Research has kept its Buy rating on CIMB Group Holdings Bhd with a target price of RM8.70, indicating a potential 9.4% upside from its current price of RM7.95. The bank's positive outlook is based on CIMB Niaga's robust performance in the second quarter, particularly its Indonesian subsidiary. While CIMB Niaga's core earnings declined by 5.3% quarter-on-quarter, they increased by 1.3% year-on-year, meeting analysts' expectations. The bank's loan growth surged to 6.6% year-on-year, with asset quality showing notable improvement, as gross impaired loans dropped to 1.55%. Strong corporate banking growth and enhanced loan demand across segments fueled this acceleration. However, HLIB Research remains cautious about funding and credit costs, which could potentially curb near-term improvements in return on equity. Despite a flat quarter-on-quarter for total revenue due to a 4.3% decline in non-interest income, CIMB Niaga's revenue still grew by 7.1% year-on-year, driven by a substantial 21.2% increase in non-interest income. Net profit grew by a modest 1.3% due to a significant increase in provisions, which more than offset the benefit from a lower effective tax rate. For the first half, total income rose by 6.7%, albeit with higher operating expenses and provisions weighing on profitability. Nonetheless, deposit growth improved to 2.8% year-on-year, buoyed by strong inflows in current and savings accounts. CIMB Niaga's gross impaired loan ratio fell to 1.55% from 2.82% in the first quarter, reflecting underlying asset quality that remains strong. Looking forward, HLIB Research remains cautiously optimistic about CIMB Niaga's prospects, highlighting above-guidance loan expansion and growing earnings from recurring fees. However, the bank advises that deposit competition, higher funding costs, and increased credit costs could limit near-term earnings growth and return on equity.",
  "summary": "KUALA LUMPUR: Hong Leong Investment Bank Bhd Research (HLIB Research) maintained its “Buy” recommendation on CIMB Group Holdings Bhd, with a target price of RM8.70, compared with the stock’s current price of RM7.95.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}