Business

Maybank raises BIMB target price

KUALA LUMPUR, May 2 — Maybank Investment raised the target price of Islamic lender BIMB Holdings to RM2.95 per share from RM2.55 on higher valuations and rising profitability.

The investment bank said it expected Bank Islam net profit to rise in 2012-13 due to an upward revision in fee incomes. There was also growth potential from its Indonesian operations, which were still in their infancy, Maybank Investment said.

“We expect Bank Islam to register relatively healthy return on equity of 12.6 per cent in 2012 and 13 per cent in 2013,” Maybank Investment analyst Desmond Ch’ng said in a note to clients.

“Coupled with the fact that the bank still has much room to gear up given it is well capitalised and has a highly liquid balance sheet, the higher valuations are justified.” — Reuters

Comments

Please refrain from nicknames or comments of a racist, sexist, personal, vulgar or derogatory nature, or you may risk being blocked from commenting in our website . We encourage commenters to use their real names as their username. As comments are moderated, they may not appear immediately or even on the same day you posted them. We also reserve the right to delete off-topic comments