MBSB Research cuts target for CIMB stock to RM9.20

Published on 10/05/2026 at 03:43 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

CIMB's net profit fell 0.2 percent to RM3.85 billion in the first half of fiscal 2026. Fifteen of 20 analysts rate CIMB stock Buy.

CIMB, MYL1023OO000, Illustration mit AI erstellt.

MBSB Research cut its target for CIMB Group Holdings (MYL1023OO000) to RM9.20 from RM9.29 in a note dated October 1, 2026. The lower target still came with a Buy rating, while the research house linked the valuation to CIMB's capital return plans and fiscal 2027 forecast assumptions.

First-half profit slips

According to The Edge Malaysia on October 5, 2026, CIMB's net profit fell 0.2 percent year over year to RM3.85 billion in the first half of fiscal 2026, while revenue declined to RM10.97 billion from RM11.10 billion. The annualized return on equity was 11.00 percent, within the bank's full-year target range of 11.00 percent to 11.50 percent.

The pressure was more visible in net interest margin. CIMB's margin was 2.04 percent in the second quarter of fiscal 2026, down four basis points from the previous quarter and 11 basis points from the same period a year earlier, according to The Edge Malaysia.

Buybacks reshape capital returns

MBSB Research's October 1 note said CIMB had repurchased 20.76 million shares for RM163 million since September 21. The buybacks form part of a wider plan to return up to RM2 billion of additional capital to shareholders by 2027, subject to market conditions and regulatory approvals.

According to The Edge Malaysia, RM700 million of that commitment had already been returned through special dividends. MBSB Research said the buybacks are intended to support earnings per share, return on equity and dividend per share, but also noted that buybacks have historically had limited success among Malaysian companies.

Bursa quote stays below high

On Bursa Malaysia, CIMB was last at MYR 7.69 on October 5, 2026 at 9:27 a.m. MYT. The quote was MYR 1.26, or 14.08 percent, below the 52-week high of MYR 8.95 and above the 52-week low of MYR 7.20.