[%IloV%]
Research by HLIB
BUY – TP RM3.10

"Growth fuelled by lower provisions”

BIMB’s 2Q24 earnings rose 6% QoQ given lower financing loss allowances and better total income. Moreover, NFM widened sequentially, financing growth held steady, and GIF ratio improved. Overall, results were broadly in line and hence, forecasts were unchanged. All in all, we now find BIMB’s risk-reward profile to be skewed to the upside. We like the bank for its attractive dividend yield of 6- 7% (2ppt higher vs peers) and we reckon it is one of the beneficiaries of the civil servants pay hike. Upgrade to BUY call with a higher GGM-TP of RM3.10 (from RM2.65), based on 0.90x FY25 P/B. 

Analyst:
Chan Jit Hoong, CFA, CPA
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$KLSE-BIMB
Research by HLIB
BUY – TP RM3.10

"Growth fuelled by lower provisions”

BIMB’s 2Q24 earnings rose 6% QoQ given lower financing loss allowances and better total income. Moreover, NFM widened sequentially, financing growth held steady, and GIF ratio improved. Overall, results were broadly in line and hence, forecasts were unchanged. All in all, we now find BIMB’s risk-reward profile to be skewed to the upside. We like the bank for its attractive dividend yield of 6- 7% (2ppt higher vs peers) and we reckon it is one of the beneficiaries of the civil servants pay hike. Upgrade to BUY call with a higher GGM-TP of RM3.10 (from RM2.65), based on 0.90x FY25 P/B. 

Analyst:
Chan Jit Hoong, CFA, CPA
jhchan@hlib.hongleong.com.my