Stock Name: MAYBANK
Company Name: MALAYAN BANKING BHD
Research House: HWANGDBS
Company Name: MALAYAN BANKING BHD
Research House: HWANGDBS
Malayan Banking Bhd's (Maybank) overseas operations are expected to drive its growth in the future, says HwangDBS Research.
However, Maybank's net interest margin was likely to remain soft although overall asset quality was expected to generally improve, HwangDBS said in its research note today.
"There could be short-term pressure on PT Wahana Ottomitra Multiartha Tbk's (WOM Finance) motorcycle non-performing loans," it said.
WOM Finance is an entity under Bank International of Indonesia, which in turn is a Maybank subsidiary.
The research house said since the acquisition of Kim Eng Holdings was only completed in May this year, it expected marginal contribution to Maybank in financial year 2011.
"Based on Kim Eng's reported net profit of RM182 million for financial year 2010, we estimate it will contribute at least RM200 million profit to the group from financial year 2012 onwards," it said.
HwangDBS has maintained a "buy" call on the bank with a target price of RM10.80. -- Bernama
However, Maybank's net interest margin was likely to remain soft although overall asset quality was expected to generally improve, HwangDBS said in its research note today.
"There could be short-term pressure on PT Wahana Ottomitra Multiartha Tbk's (WOM Finance) motorcycle non-performing loans," it said.
WOM Finance is an entity under Bank International of Indonesia, which in turn is a Maybank subsidiary.
The research house said since the acquisition of Kim Eng Holdings was only completed in May this year, it expected marginal contribution to Maybank in financial year 2011.
"Based on Kim Eng's reported net profit of RM182 million for financial year 2010, we estimate it will contribute at least RM200 million profit to the group from financial year 2012 onwards," it said.
HwangDBS has maintained a "buy" call on the bank with a target price of RM10.80. -- Bernama
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