Latest news with #RM10.90
The Star
3 days ago
- Business
- The Star
Single digit 2Q growth for banks predicted
RHB Research said operating expenditure among banks would likely be mixed. PETALING JAYA: Malaysian banking stocks are expected to post low to single-digit percentage growth for the second quarter of this year (2Q25), says RHB Research. It said the growth in profit after tax and minority interest (Patmi) would likely come from stronger operating income led by non-interest income with mixed net interest income as well as contributions from associates. The research house, which maintained a 'neutral' rating on banking stocks, said growth expectations have been reset lower, with no expectations of major Patmi downgrades, although there could be possible downside risks to loans growth and net interest margins (NIM). 'Most banks are set to announce interim dividends too, which we see driving near-term sector outperformance,' the research house said, adding that credit costs could rise from the absence of chunky writebacks rather than asset-quality pressures. Loan growth for 2Q25 could show a deceleration from 7% year-on-year (y-o-y) in 2Q24 after taking into consideration Bank Negara Malaysia's data showing 5% increase y-o-y in June 2025 versus June 2024 at 6%, with some banks citing slower drawdowns from non-retail sectors due to tariff uncertainties and foreign -exchange impacts. 'While domestic NIM could likely expand quarter-on-quarter (q-o-q) partly helped by the statutory reserve requirement cut and banks frontrunning July's overnight policy rate cut, NIM from overseas operations should see continued pressure from falling benchmark rates and tight liquidity conditions,' it noted. 'On the other hand, declining bond yields, with the average Malaysian Government Securities 10-year yield for 2Q25 down about 20 basis points q-o-q, are positive for trading gains, while market volatility and uncertainty should benefit foreign exchange and hedging activities. We think these could compensate for any weakness from lower loan and wealth-related fees,' it added. RHB Research said operating expenditure among banks would likely be mixed but expect them to exercise tight control amid tougher conditions to grow revenue. 'On asset quality, first-order impacts from the US tariffs appear contained and there have been no major tariff-related asset-quality issues observed,' it said. Its top picks remain Malayan Banking Bhd with a target price of RM10.90, Hong Leong Bank Bhd at RM24.30 and CIMB Group Holdings Bhd at RM8.40. All have 'buy' ratings.
The Star
4 days ago
- Business
- The Star
Banks' 2Q growth expected in single-digits
PETALING JAYA: Malaysian banking stocks are expected to post low to single-digit percentage growth for the second quarter ended June 30, 2025 (2Q25) in profit after tax and minority interest (Patmi) on stronger operating income led by non-interest income with mixed net interest income as well as contributions from associates, says RHB Research. The research house, which has maintained a 'neutral' rating on banking stocks, said growth expectations have been reset lower, with no expectations of major Patmi downgrades, although there could be possible downside risks to loans growth and net interest margin (NIM). 'Most banks are set to announce interim dividends too, which we see driving near-term sector outperformance,' it said, flagging that credit cost could rise from the absence of chunky writebacks rather than asset quality pressures. Loans growth for 2Q25 could show a deceleration from 7% year-on-year (y-on-y) in 2Q24 after taking into consideration Bank Negara's banking system data showing 5% increase y-on-y in June 2025 versus June 2024 at 6%, with some banks citing slower drawdowns from non-retail due to tariff uncertainties and forex impact. 'While domestic NIM could likely expand quarter-on-quarter (q-on-q) partly helped by the statutory reserve requirement cut and banks frontrunning July's overnight policy rate cut, NIM from overseas operations should see continued pressure from falling benchmark rates and tight liquidity conditions,' it noted. 'On the other hand, declining bond yields (2Q25 average Malaysian Government Securities 10-year yield down c.20 basis points q-on-q) is positive for trading gains, while market volatility and uncertainty should benefit forex and hedging activities. We think these could compensate for any weakness from lower loan and wealth-related fees,' it added. RHB Research said operating expenditure among banks would likely be mixed but expect them to exercise tight control amid tougher conditions to grow revenue. 'On asset quality, first-order impacts from the US tariffs appear contained and there have been no major tariff-related asset quality issues observed,' it said. Its top picks remain Malayan Banking Bhd with target price (TP) of RM10.90, Hong Leong Bank Bhd with TP of RM24.30 and CIMB Group Holdings Bhd with TP of RM8.40. All have 'buy' ratings.
Malaysian Reserve
07-07-2025
- Business
- Malaysian Reserve
Maybank retains Buy, target price stays at RM10.90
MALAYAN Banking held an investor day on 4 July titled 'Super Growth'. It showcased three areas (out of seven identified) that Maybank expects to drive growth ahead, ie wealth management, mid-market segment, and global market FX sales. More importantly, most of these drivers are from capital light, non-II. We see Maybank as defensive, given relatively low foreign shareholding (c. 19%), guidance to at least retain absolute dividend per share aids dividend visibility, and healthy RM1.8b overlay buffers to cushion asset quality risks. Keep Buy and RM10.90 target price, 12% upside with c.6% FY25F yield. – RHB Investment Bank Bhd (July 7, 2025) (Calls by analysts tracked by Bloomberg: 12 Buy, 7 Hold, 1 Sell; Consensus target price: RM10.93)
