Stock Name: MAYBANK
Company Name: MALAYAN BANKING BHD
Research House: ECMLIBRA



ECM Libra has revised upwards its target price for Malayan Banking Bhd (Maybank) to RM9.81 from RM8.98, saying that the country's largest lender remained a "buy" counter.

The bank's financial year 2010 results came in within expectations as net profit was 3.1 per cent and 3.7 per cent above house and consensus estimates respectively, said ECM Libra.

"Full-year dividend per share was declared at 41.3 sen, implying payout ratio of 76.5 per cent and net yield of 5.1 per cent," it said in a research note today.

According to OSK Research, Maybank is well positioned to ride on the economic recovery.

"Its previous conservative provisioning, improving asset quality, strengthening capital base and larger regional footprint will propel earnings," it said in a research note.

OSK Research said the group remained relatively well capitalised, with its core equity, Tier 1 and risk-weighted capital ratio (RWCR) at 8.6 per cent, 11.06 per cent and 14.7 per cent respectively.

"This will give more scope for future dividend upside as management has alluded that future payouts may exceed 60 per cent if Basel III capital requirements prove to be less stringent than expected," it said. -- Bernama