BIMB 5258 BANK ISLAM MALAYSIA BERHAD back on investors’ radar. Is this time to rush in?
Bank Islam Malaysia Bhd saw heightened interest on June 22 rising 7.2% to close at RM1.93.
Investors are hoping for a strong revival after it declined to a 52-week low of RM1.70.
It touched a year high of RM2.74 in January this year but fizzled out subsequently.
Institutional investors was the group most impacted after the company's market cap fell to RM5 billion in February.
If the decline continues, institutional investors may be pressured to sell their stakes in Bank Islam Malaysia which might hurt individual investors.
That said, analysts are still bullish on the counter with AmInvest Research although it has revised its fair value lower to RM2.20 from RM2.30 previously.
The research house lowered its FY23 book value per share on an enlarged number of shares.
Its fair value is based on FY23 ROE of 7.6% leading to a price to BV of 0.7x.
AmInvests maintains its earnings forecast in view that the 1Q23 underlying earnings were within expectation, accounting for 23% of its FY23 net profit and 20% of consensus’.
The bank reported a higher 1Q23 core net profit of RM118 mil, which grew 1.4% YoY after stripping out the impact of Cukai Makmur in 1Q22.
The improved earnings were driven by higher net fund-based income from loan expansion and an increase in non-fund based income, partially offset by higher provisions and operating expenses (opex).
Bank Islams’ 1Q23 saw a stronger non-fund based income of RM105 mil (+132.4% YoY). This was supported by higher investment income (+RM22.4 mil) from gains in disposal of investment securities, higher FX profits and marked-to-market gains in unit trust of BIMB Investment compared to unrealised losses recorded in the preceding quarter of the previous financial year.
Opex grew 21.5% YoY in 1Q23, largely contributed by higher personnel cost from salary adjustments and investments in new talents, RM6.1 mil increase in IT expenses and RM6.2 mil in banking transaction-related expenses.
Bank Islam’s gross financing accelerated to 10.7% YoY in 1Q23, outpacing the industry’s loan expansion of 5% YoY.
Retail loans (consumer & SME) expanded by 8.8% YoY while business loans (corporate & commercial) grew by 17.1% YoY.
However, investors are not overly excited about Bank Islam's flat earnings over the past five years.
In the long run, the best dividend stocks all grow their earnings per share.
#BIMB
https://xifu.my/OpinionsComment.aspx?BID=B02236100PBAB0DC
Singapore Investment
-
-
-
-
-
-
Musk’s xAI launches API10 hours ago
-
-
-
-
Union Square Residences12 hours ago
-
-
-
AAC Teh (2018): Potential Mark Up20 hours ago
-
-
-
-
-
-
-
-
-
Best Areas in Seoul to Buy Property2 days ago
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
The gold rush again1 week ago
-
Finance Investment Movement 501 week ago
-
-
-
-
-
-
-
-
-
I quit my Full time job!2 weeks ago
-
-
Sep 2024 Portfolio2 weeks ago
-
-
-
-
-
SGX share price on 3-year high!2 weeks ago
-
-
-
-
-
-
-
Summary of September 20242 weeks ago
-
-
-
-
-
-
3Q 2024 Investment Strategy Update3 weeks ago
-
A peek behind the curtain3 weeks ago
-
-
Portfolio (Sep 30, 2024)3 weeks ago
-
-
China boom?3 weeks ago
-
-
-
-
PSA Annoucement: Life of a minion3 weeks ago
-
STI ETF4 weeks ago
-
-
-
-
-
-
-
-
-
-
Unibet Casino Bonus Codes 20241 month ago
-
-
-
-
-
MSC: Mission Critical distributor1 month ago
-
500k Milestone!2 months ago
-
Random thoughts: Air Drying of car2 months ago
-
-
-
-
-
-
-
-
-
-
-
Monthly IBKR Update – June 20243 months ago
-
At the Half Year Mark3 months ago
-
-
-
-
-
-
-
-
-
Breakthroughs in portfolio :)4 months ago
-
-
-
-
-
Feb 2024 Expenditure6 months ago
-
-
The Market Is A Scam!7 months ago
-
-
-
Options Trading Journal Jan 20248 months ago
-
-
-
-
Year 2023 DIYQuant Portfolio Performance Report9 months ago
-
Monthly Summary of November 202310 months ago
-
Migration of website10 months ago
-
-
-
-
-
-
-
-
-
-
A New Light1 year ago
-
-
-
-
-
-
2022 Thoughts, Hello 2023!1 year ago
-
Series of Defaults for Maple Finance1 year ago
-
Takeaways from “Sea Change”1 year ago
-
Greed is Coming Back1 year ago
-
-
-
-
-
-
-
-
-
-
-
What is Overemployment2 years ago
-
Terra Hill Condo (former Flynn Park)2 years ago
-
Alibaba VS Tencent: The Battle Royale2 years ago
-
-
-
-
-
-
-
-
-
Home
BIMB
xifu
BIMB 5258 BANK ISLAM MALAYSIA BERHAD back on investors’ radar. Is this time to rush in?