CIMB's result for QE31/12/2016 (4Q16) was released on February 28. That quarter saw CIMB's net profit dropped 16.5% q-o-q but rose 3.5% y-o-y to RM854 million. Revenue rose 4.6% q-o-q or 6.7% y-o-y to RM4313 million.
Table: CIMB's last 8 quarterly results
We can see from the graph below that CIMB's quarter;y financial performance dipped. The 4Q16 revenue or operating income was 4.6% higher, with net interest income growing 7.9% and partially offset by a 2.3% decline in non-interest income. The 4Q16 net profit was 16.5% lower q-o-q due to the PT Sun Life gain of RM150 million in 3Q16 and improved net interest income, partially offset by higher provisions from Thailand.
Graph 1: CIMB's last 22 quarterly results
Notwithstanding the slight dip in earnings for QE31/12/2016, CIMB finished FY2016 with a rebound in its earnings. This signals the beginning of its earning growth trajectory ahead.
Graph 2: CIMB's last 12 yearly results
CIMB (closed at RM5.45 yesterday) is now trading at a trailing PER of 13.3x (based on last 4 quarters' EPS of 41 sen). At this PER, CIMB is deemed fairly valued.
CIMB broke above the resistance from the line connecting the recent peaks (AB) at RM5.20. With this breakout, CIMB's upleg has truly begun.
Chart 1: CIMB's weekly chart as at Mar 7, 2017 (Source: ShareInvestor.com)
Its next resistance will come from the horizontal line at RM6.30.
Chart 2: CIMB's monthly chart as at Mar 7, 2017 (Source: ShareInvestor.com)
Based on satisfactory financial performance & bullish technical outlook, CIMB could be a good stock for long-term investment.
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