CFG Bank: Wealthy Clientele Boosts Deposits, Saham Bank Raises Target Price

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Saham Bank analysts have raised their target price for CFG Bank’s stock from MAD 283 per share to MAD 313 per share. This new target implies a potential upside of +25.1% compared to the latest quoted price. It corresponds to implied multiples of 25.8x and 22.3x on the P/E ratios for 2026E and 2027E, respectively, and 4.7x and 4.1x on the P/B ratios for the same years. This revision is driven by improved earnings prospects for the bank.

The release of CFG Bank’s half-year results caught the attention of Saham Bank analysts, who updated their target price in a note dated September 11.

Strong Performance in Private Banking

CFG Bank achieved 105% of analysts’ initial forecasts for demand deposits (DAV) in 2025. This outperformance is attributed to the unexpected resilience of average client deposits and strong deposit growth in the private banking segment, amid a particularly dynamic capital markets environment.

“We now project an average DAV share of 47% over the next five years, up from 43% previously, aligning with management’s stated target of 50%. As a result, we are raising our net profit (RNPG) forecasts by +21.6% for 2025 and approximately +12% annually through 2029,” the analysts noted.

For reference, CFG Bank’s net profit (RNPG) surged by +66% as of June 2025, driven by market activities, though a significant portion of this performance is considered non-recurring. Based on this, Saham Bank now anticipates a net profit of MAD 367 million in 2025, up from MAD 301 million previously, and MAD 424 million in 2026, compared to MAD 355 million initially forecasted.

The net banking income (PNB) is expected to exceed MAD 1.4 billion as early as 2026, a milestone reached ahead of schedule.

“The upward revision of forecasts over the period stems primarily from an improved net interest margin (MNI), driven by a higher-than-expected share of DAV, and a more significant reduction in the cost-to-income ratio (CoEx) to 42% by 2029, compared to 45% initially,” explained Saham Bank analysts.

They concluded: “Given the stock’s upside potential, the bank’s consistent ability to exceed expectations, and several positive catalysts in the coming years—namely (1) a likely strengthening of the capital markets cycle in 2026-2027, (2) the momentum in demand deposits, and (3) promising prospects for equipment loans—we maintain our BUY recommendation on the stock.”