KUALA LUMPUR: OSK Research says CIMB Group is set to announce its 4Q09 results on Tuesday, Feb 23 and it believes that earnings will outpace consensus estimates for the third consecutive quarter.

It said the stronger earnings will be underpinned by a recovery in forex income flow; further traction in CIMB Niaga’s earnings growth; and relatively benign NPL trend.

“Maintain BUY, TP: 14.90 (17% ROE, 2.55x FY10 PBV),” it said.

It expected CIMB’s full-year results to come in slightly above its already bullish earnings assumption of RM2.72 billion (consensus: RM2.61 billion), driven by 1) stronger earnings from CIMB Niaga, 2) renewed growth in forex income on the back of buoyant global trading volume, and 3) a still-benign NPL environment.

OSK Research said it expected full-year earnings to come in roughly 6%-7% above consensus forecast.