FiNews

CIMB Net Interest Margin Recovery May Be Key Rerating Catalyst

Author: Caleb Wilson

CIMB Net Interest Margin Recovery May Support Stock Rerating

CGS International analyst Winson Ng says a likely rebound in CIMB Group's net interest margin (NIM) in the second quarter and improving operating efficiency could act as key rerating catalysts for the stock.

Supported by Indonesia Rate Hike and Low-Cost Deposit Growth

Ng notes that CIMB expects a stronger NIM outlook in 2Q, supported by Indonesia's benchmark rate hike and growth in low-cost deposits. CGS cuts CIMB's target price to 9.60 ringgit from 10.00 ringgit due to expected lower net interest income in 2026-2028.

Buy Rating Maintained with Attractive Dividend Yield

However, the firm maintains an add rating on the stock, citing an expected recovery in NIM in 2Q and an attractive 2026 dividend yield of 6.1%. Shares are 0.5% higher at 7.72 ringgit.

Impacted Symbols

Symbols affected by this headline and their sentiment signals

CI
CIMBPositive

CIMB Group Holdings Bhd

The news directly focuses on CIMB's net interest margin recovery, which is seen as a positive catalyst for the stock. Analysts maintaining an 'add' rating and attractive dividend yield support the positive impact.

Impact score85%

The news, analyses, and comments on this platform do not constitute investment advice. When making investment decisions, you should conduct your own research and consult with a qualified financial advisor if necessary. FiNews cannot be held responsible for any losses that may arise from the use of this information.