HLIB: MAYBANK SHARES CAN RISE TO RM9.90
Banking group set to see more non-interest income from robust capital market activities
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.