- Based on update from Malayan Banking (Maybank), we understand that there will be no financial impact from the sale of its 9% stake in PT Bank Internasional Indonesia Tbk (BII).

- To recap, Maybank sold the 9% stake at IDR355/share to UBS. The press has reported that the sale price is below the IDR510/share price paid by Maybank under the tender offer portion.

- We have confirmed that there is no financial impact from the sale, whether one-off or in relation to any requirement to do provision for impairment for Maybank’s remaining 80% stake. This is positive for Maybank.

- We believe Maybank is seeking extension for the remaining 8.3% yet to be sold. We believe the timeline is mid-2013.

- Separately, Maybank has also indicated that the recent rise in Malaysian Government Securities yield will not have a significant impact to its financial statements.

- Maybank has also indicated that the Developer Interest Bearing Scheme (DIBS) mortgage makes up about 5% of its mortgage portfolio.

- It believes there should not be any significant impact to its bottomline, if there are any curbs to the DIBS scheme.

- We maintain HOLD.

Source: AmeSecurities