CIMB's non-interest income to surpass expectations: HwangDBS Vickers

A research group forecasts CIMB Group's non-interest income for financial year 2012 to be better-than-expected.

HwangDBS Vickers Research said the bank's involvement in PLUS Expressway Bhd's bond issuance should put FY12 on a strong start.

"We now expect non-interest income to be flattish year-on-year in FY12 compare to a contraction in our previous forecasts," it said.

It said CIMB's treasury business should continue to do well but equity markets were expected to remain soft

Separately, the research house said, the Asia Petroleum Hub issue should not adversely impact CIMB's bottomline, as sufficient provisions had been made back in FY10.

HwangDBS Vickers said the bank's cost-cutting measures were also on track.

"The management targets lower cost-to-income ratio of 50 per cent by FY13 by reducing duplication and improving business processes that lower general costs over time," it said.

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