HLIB: MAY­BANK SHARES CAN RISE TO RM9.90

Bank­ing group set to see more non-in­ter­est in­come from ro­bust cap­i­tal mar­ket ac­tiv­i­ties

New Straits Times - - Business / News -

KUALA LUMPUR

HONG Leong In­vest­ment Bank Re­search (HLIB) main­tained a “buy” call on Malayan Bank­ing Bhd (May­bank) and tar­get price of RM9.90.

In its notes to in­vestors yes­ter­day, HLIB said May­bank, Malaysia’s big­gest bank by as­sets, was set to see more non­in­ter­est in­come from ro­bust cap­i­tal mar­ket ac­tiv­i­ties.

In the first quar­ter of this year, May­bank’s loan growth in the do­mes­tic mar­ket grew seven per cent while in Sin­ga­pore and In­done­sia, loan dis­burse­ment went up by 16 and 20 per cent, re­spec­tively.

In China, May­bank’s loan growth had ex­panded at a stronger pace for the third con­sec­u­tive quar­ter.

HLIB said May­bank was also a fron­trun­ner ben­e­fi­ciary and the best proxy to ride a re­cov­ery in Malaysia’s eco­nomic growth.

Two days ago, May­bank told the stock ex­change it posted a 19 per cent in­crease in its first quar­ter profit to RM1.7 bil­lion from RM1.43 bil­lion posted in the same quar­ter a year ago.

May­bank’s first quar­ter rev­enue ended March 2017 was higher at RM11.28 bil­lion ver­sus RM11.18 bil­lion in March 2016.

Its shares closed one sen higher to RM9.40 yes­ter­day.

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