CIMB Research raises target price for RHB Bank to RM6.50

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KUALA LUMPUR (April 15): CIMB IB Research has maintained its “Add” rating on RHB Bank Bhd at RM5.68 with a higher target price of RM6.50 (from RM6.38) and said it takes a positive view on the increase of RHB Bank’s base rate (BR) by 10 basis points (bp) to 4% on 5 Apr 19 as this will enhance its net interest margin (NIM).

In a note April 12, the research house said it expects the 10bp rise in BR to lift RHB Bank’s net profit by circa 5% and NIM by 7bp for FY20-21F.

“RHB Bank remains an Add and our top pick for the sector given its attractive valuations and improvements from the transformation programme,” it said.