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Bank Islam’s 3Q21 earnings were below expectations largely on account of weaker investment income and lower NIMs. We cut FY21-23E net profit by 8-15%, factoring in lower margins, investment income and the impact of Cukai Makmur in FY22. We maintain a BUY but lower our TP to MYR3.20 from MYR3.80 on a PBV of 0.9x for FY22 (ROE: 8.8%).

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