MBSB cuts target for CIMB stock to MYR 9.20 as buybacks advance

Published on 10/20/2026 at 03:40 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

CIMB earned MYR 1.94 billion in the second quarter of 2026. MBSB Research kept a Buy call on CIMB stock in its October 1, 2026 note.

Capital return and earnings

On October 1, 2026, MBSB Research cut its CIMB target from MYR 9.29 to MYR 9.20.
CIMB reported MYR 1.94 billion in net profit for the second quarter of 2026.
CIMB had a MYR 77.8 billion market capitalization on October 20, 2026.

CIMB, MYL1023OO000, Illustration mit AI erstellt.

CIMB stock (ISIN MYL1023OO000) is being assessed against a lower analyst target after MBSB Research reduced its valuation to MYR 9.20 from MYR 9.29 on October 1, 2026. The research house kept its Buy call while examining the bank's MYR 2 billion capital return plan, according to The Edge Malaysia.

Three milestones since May

The most recent results had shown resilient profitability. CIMB recorded MYR 1.94 billion in net profit for the second quarter of 2026, while return on equity reached 11.2 percent and the bank declared a first interim dividend of MYR 0.1965 per share, according to CIMB.

The chronology is clear: first-quarter 2026 revenue was MYR 5.08 billion and net income was MYR 1.92 billion on May 28, 2026; second-quarter revenue reached MYR 5.13 billion and net income MYR 1.94 billion on August 29, 2026; and MBSB Research cut its target to MYR 9.20 from MYR 9.29 on October 1, 2026, as reported by Simply Wall St and The Edge Malaysia.

What does the target cut mean?

The change leaves the valuation debate tied to capital returns rather than a simple earnings rebound. MBSB Research said CIMB had already returned MYR 700 million through special dividends from the MYR 2 billion scheme, while buybacks had reached 20.76 million shares for MYR 163 million since September 21, 2026, according to The Edge Malaysia. That arithmetic makes execution the key variable: the bank's capital plan must satisfy investors while supporting earnings per share and return on equity.

Bursa Malaysia valuation

CIMB Group Holdings was trading at MYR 7.20 on Bursa Malaysia on October 20, 2026 at 9:23 a.m. MYT. Its market capitalization was MYR 77.8 billion, while the 52-week range stood at MYR 7.13 to MYR 8.95 on the same date. The next valuation test is the balance between the MYR 2 billion capital-return commitment and the lower MYR 9.20 analyst target.