KUALA LUMPUR (March 16): AllianceDBS Research has maintained its “Hold” rating on BIMB Holdings Bhd at RM3.99 with a lower target price of RM4.10 (from RM4.50) and said although overall loan growth remained strong,softer consumer sentiment would slow growth going forward.

In a note Monday, the research house said it was cutting its FY15-16F earnings by 5-6% on the back of sustained pressure on NIM and higher provisions.

“Our FY15F loan and deposit growth assumption stands at 15% and 10%, respectively.

“Following our earnings cut, we lower target price to RM4.10 (from RM4.50). This is based on the Gordon Growth Model 17% ROE (previously 18%), 11% cost of equity and 5% long-term growth.

“We see little re-rating catalysts for the bank as Bank Negara’s tightening measures on consumer loans could dampen loan growth,” it said.