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Research by Kenanga
UNDERPERFORM – TP RM2.25

"Counting on Backloaded Earnings”

BIMB’s 1HFY24 net profit was within expectations despite modest financing growth, with a greater pipeline of disbursements from retail and corporate accounts planned for 2HFY24. While the group reported positive movements in NIMs and GIF, we reckon risk-reward profile for the group is less favourable at current price points, following a rise in the stock price in August after the recently announced civil servant wage hike, on anticipated benefits to BIMB of up to +4% in financing assets. Maintain forecasts and TP of RM2.25 but downgrade the stock to UP (from MP). Nevertheless, BIMB is also supported by a decent yield of more than 6%.

Analyst:
Clement Chua 
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$KLSE-BIMB
Research by Kenanga
UNDERPERFORM – TP RM2.25

"Counting on Backloaded Earnings”

BIMB’s 1HFY24 net profit was within expectations despite modest financing growth, with a greater pipeline of disbursements from retail and corporate accounts planned for 2HFY24. While the group reported positive movements in NIMs and GIF, we reckon risk-reward profile for the group is less favourable at current price points, following a rise in the stock price in August after the recently announced civil servant wage hike, on anticipated benefits to BIMB of up to +4% in financing assets. Maintain forecasts and TP of RM2.25 but downgrade the stock to UP (from MP). Nevertheless, BIMB is also supported by a decent yield of more than 6%.

Analyst:
Clement Chua 
clement.chua@kenanga.com.my