NIM expansion to partly offset higher FLP
? We are relatively less positive on Bank Islam after its briefing as it is guiding
for higher CCOR of 35bp in FY22 (vs. our projected 23bp previously).
? However, Bank Islam expects potentially better NIM of 2.3-2.4% in FY22F
(vs. 2.3% in 1Q22), on expectation of an OPR hike of more than 25bp.
? Despite the concerns on heighted credit costs, we retain our Add call on
Bank Islam as we regard the bank as the biggest beneficiary of OPR hikes.