CIMB Shares Rose In Early Trade Despite Softer Quarterly Earnings

KUALA LUMPUR, May 28 (Bernama) -- CIMB Group Holdings Bhd shares rose in early trade today despite posting lower earnings in the first quarter ended March 31, 2026 (1Q 2026).

At 10.51 am, CIMB shares rose two sen to RM7.70 with a total of 5.06 million shares traded.

In a Bursa Malaysia filing, the bank said its net profit fell by 2.9 per cent to RM1.91 billion in 1Q 2026 from RM1.97 billion a year ago, while revenue eased by 1.6 per cent to RM5.41 billion from RM5.49 billion previously.

“The performance reflected steady underlying momentum despite foreign exchange and geopolitical headwinds, supported by disciplined execution of its (six-year business) strategy Forward30,” it said.

CIMB said its net profit translated into a return on equity (ROE) of 11 per cent and earnings per share of 17.8 sen.

Meanwhile, Hong Leong Investment Bank Bhd views the recent profit-taking as a window for investors to capitalise on an increasingly undemanding valuation.

“The bank remains cautiously optimistic regarding its FY2026 ROE target of 11 per cent to 11.5 per cent, anchored by a robust wholesale pipeline in Malaysia and Singapore, stabilising net interest margins, and strong non-interest income.

It is maintaining a “Buy” call with a target price of RM9.80 per share.

-- BERNAMA