Stock Name: MAYBANK
Company Name: MALAYAN BANKING BHD
Malayan Banking Bhd (Maybank) will be less susceptible to capital market weakness, given its stronger commercial banking supported by transactional activities. HwangDBS Vickers Research said Maybank's recurring non-interest income at
59 per cent of total non-interest income with solid deposit franchise and high
share of current and savings accounts would give it a natural advantage over
peers to strengthen transaction banking. "Overall, Maybank's market-related income is 21 per cent of non-interest
income," it said in a note today. HwangDBS said the inclusion of Kim Eng would raise investment banking income
to eight per cent of total revenue (from two per cent), by leveraging on its
local capabilities and Kim Eng's franchise. It said the key risks were integration and execution of mandates, which
depended on market conditions. The research house has trimmed financial year 2011-2012 forecast earnings by
two-seven per cent on lower loan growth and net interest margin.
HwangDBS said it has maintained Maybank's "buy" call at target price of RM10.60. -- Bernama
Company Name: MALAYAN BANKING BHD
| Research House: HWANGDBS | Price Call: BUY | Target Price: 10.60 |
Malayan Banking Bhd (Maybank) will be less susceptible to capital market weakness, given its stronger commercial banking supported by transactional activities. HwangDBS Vickers Research said Maybank's recurring non-interest income at
59 per cent of total non-interest income with solid deposit franchise and high
share of current and savings accounts would give it a natural advantage over
peers to strengthen transaction banking. "Overall, Maybank's market-related income is 21 per cent of non-interest
income," it said in a note today. HwangDBS said the inclusion of Kim Eng would raise investment banking income
to eight per cent of total revenue (from two per cent), by leveraging on its
local capabilities and Kim Eng's franchise. It said the key risks were integration and execution of mandates, which
depended on market conditions. The research house has trimmed financial year 2011-2012 forecast earnings by
two-seven per cent on lower loan growth and net interest margin.
HwangDBS said it has maintained Maybank's "buy" call at target price of RM10.60. -- Bernama
No comments:
Post a Comment