As of early May 2025, CIMB Group Holdings Berhad (KLSE: CIMB) presents a mixed investment outlook for the next 1–2 weeks, with both promising fundamentals and near-term market uncertainties. 

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? Short-Term Stock Outlook (1–2 Weeks)

CIMB’s stock has recently experienced a slight decline, dropping 2.8% over the past week. Analysts have set target prices ranging from RM6.60 to RM8.60, indicating potential upside from current levels. However, short-term performance may be influenced by broader market volatility, including global economic uncertainties and competition for deposits. 

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? Financial Performance & Dividend Profile
• FY2024 Net Profit: RM7.73 billion, marking an 11% increase year-over-year. 
• Earnings Per Share (EPS): RM0.7227. 
• Return on Equity (ROE): 11.4%, up from 10.7% in FY2023. 
• Dividend Yield: Approximately 6.65%, with a semi-annual payout totaling RM0.47 per share in FY2024. 
• Payout Ratio: 72.61%, indicating a strong commitment to returning profits to shareholders. 

CIMB has also declared special dividends, including a 7 sen per share payout in August 2024, reflecting robust capital management. 

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⚠️ Risks and Challenges

Investors should be aware of several potential risks:
• Margin Compression: Intense competition for deposits may pressure net interest margins. 
• Asset Quality Concerns: Exposure to markets like Indonesia could pose challenges if economic conditions worsen. 
• Regulatory Changes: The upcoming adoption of Basel III standards may impact capital ratios, though the effect is expected to be manageable. 
• Market Volatility: Global economic uncertainties and geopolitical tensions could affect investor sentiment and stock performance. 

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? Recovery and Growth Prospects

Despite short-term headwinds, CIMB’s long-term outlook remains positive:
• Revenue Growth: Projected at 7% annually over the next three years, outpacing the Malaysian banking industry’s average. 
• Strategic Initiatives: The “Forward23+” plan focuses on digital transformation and regional diversification, particularly in high-growth markets like Indonesia and Singapore. 
• Capital Strength: A Common Equity Tier 1 (CET1) ratio of 14.5% provides a solid buffer for future growth and dividend sustainability. 

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✅ Summary

CIMB offers a compelling dividend yield and demonstrates strong financial health, making it attractive for income-focused investors. However, short-term stock performance may be influenced by external economic factors and industry-specific challenges. Long-term prospects appear favorable, supported by strategic initiatives and solid capital management.

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