MAYBANK Kim Eng Research is expecting a 15 per cent loan growth for BIMB Holdings Bhd in fiscal year 2015.
The research firm, however, expects the bank’s net interest margin to come under pressure.
“We are now looking at a 10 basis point compression in fiscal year 2015 net interest margin (from flat previously) in lieu of this shift towards lower yielding assets, coupled with funding cost competition,” Maybank Kim Eng said in its note yesterday.
BIMB’s gross financing growth was 21 per cent year-on year, driven mainly by residential property financing, which rose 38 per cent year-on year and accounted for 30 per cent of total financing.
The bank’s personal financing growth was up 16 per cent year-on year ending September, versus a growth of 19 per cent year-on year at the end of June.
BIMB’s personal financing currently accounts for 33 per cent of total financing.
Maybank Kim Eng said BIMB’s interim dividend per share of 14.7 sen (in the form of a dividend reinvestment plans) was a positive surprise.
It is maintaining its “hold” call on BIMB, with an unchanged standard operating procedures derived target price of RM4.40.