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CGS-CIMB lowers Credit Bureau Asia's EPS estimates on higher opex and lower non-FI volumes

Khairani Afifi Noordin
Khairani Afifi Noordin8/11/2022 09:20 AM GMT+08  • 2 min read
CGS-CIMB lowers Credit Bureau Asia's EPS estimates on higher opex and lower non-FI volumes
The commencement of operations of the digital banks in Singapore is a key rerating catalyst. Photo: Credit Bureau Asia
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CGS-CIMB Research analyst Andrea Choong has kept her “add” call on Credit Bureau Asia (CBA) but cuts her FY2022-FY2023 EPS estimate by 3%-5%.

“While operating margins in 1HFY2022 for both segments have stayed broadly stable at about 57% for its financial institution (FI) business and about 41% for its non-FI business, we raise our operational expenditure estimates and tone down non-FI revenue to reflect softer domestic demand in 2HFY2022,” says Choong.

CBA’s 1HFY2022 PATMI of $4 million formed 47% of CGS-CIMB’s estimate. Its steady business growth across all segments drove 1HFY2022 revenue higher by 5% y-o-y but was partially offset by lower non-operating income from less government grants received and higher opex due to increase in headcount to fulfil operational and compliance requirements as well as salary adjustments.

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