Analysts are optimistic on BIMB’s prospects, given the group’s ability to maintain its NIM. — Reuters photo
KUCHING: Analysts are optimistic on BIMB Holdings Bhd’s (BIMB) prospects, given the group’s ability to maintain its net interest margin (NIM).
Following BIMB’s third quarter of financial year 2018 (3QFY18) results, the research arm of MIDF Amanah Investment Bank Bhd (MIDF Research) said that it has made no change to optimism on the group.
“We remain with our optimism on the group’s prospects,” MIDF Research said.
“We continue to like the group for its ability to maintain its NIM despite presence of pressure in the banking system.
“We also like its conservatism as this keeps its asset quality stable.”
The research arm believed that the group should present an attractive investment case.
“In addition, Takaful Malaysia seems to be able to solidify its position as the leading Shariah compliant insurance provider.”
On another note, AmInvestment Bank Bhd (AmInvestment Bank) continued to expect upticks in the group’s total gross impaired financing (GIF) ratio with the slowdown in economic growth ahead. AmInvestment Bank also expected credit cost to be slightly higher moving into FY19.
“This is due to the implementation of the Malaysian Financial Reporting Standards (MFRS) 9 and the potential change of macroeconomic variables onto its model to reflect a slower economic growth ahead,” the research firm said.
For the nine months ended September 30, BIMB announced a 10.2 per cent increase in profit before zakat and taxation (PBZT) to RM807.3 million, from RM732.3 million in the same period last year.
According to BIMB, the bank continued to maintain its strong asset quality which is reflected in the low GIF ratio of 0.97 per cent as at end September 2018, compared with 1.58 per cent registered by the banking system as at end August 2018.