KUALA LUMPUR: BIMB Holdings Bhd’s share price rose on Bursa Malaysia this morning, hours after the banking group reported a better profit in the first quarter of this year.
As at 9.50am, BIMB added one sen to RM3.62 with 119,000 shares changing hands.
BIMB in a statement yesterday announced a 3.3% increase in net profit attributable to shareholders to RM209.2 mil for the first quarter (1Q) ended March 31, 2020.
It posted a group profit before zakat and taxation (PBZT) of RM321.8 mil, up 0.7% or RM2.2 mil from the RM319.6 mil recorded in the same period last year.
MIDF Amanah Investment Bank Bhd said the results were above its expectations as it had overestimated the income attributable to depositors.
In light of the group’s better-than-expected results, MIDF has revised upward BIMB’s financial year 2020, 2021 and 2022 earnings forecast to RM695.3 mil, RM717.4 mil and RM754.3 mil respectively.
“The group continues to exhibit a strong earnings growth momentum despite a challenging environment. Of particular note was the pace of the gross financing growth.
“Also, it seems that the group was able to manage its cost of funds very well as evident by the moderated net interest margin compression,” said MIDF in a research note today.
While Bank Islam Malaysia Bhd’s (subsidiary of BIMB) credit cost would increase and asset quality would come under pressure, MIDF believed it would be manageable, to say the least, due to the profile of its borrowers.
MIDF has maintained its buy call on BIMB with a revised target price of RM4.25 from RM4.05 previously. – May 29, 2020, Bernama
