Bursa Malaysia Stock Watch
OSK Research maintains overweight on banks
kltrader
Publish date: Mon, 13 Sep 2010, 03:53 PM
kltrader
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KUALA LUMPUR: OSK Research is maintaining its Overweight on banks with CIMB, Maybank and RHB Capital as its Top Buys.
The research house issued the report on Monday, Sept 13 after the Basel committee decided to raise minimum common equity requirement from 2% to 4.5% by 2015 with an additional 2.5% buffer by end 2018. The longer term target as of 1 Jan 2019 is 7%
"This 7% longer term target is at the lower end of the 6%-9% range the market was expecting. So everyone can breathe a sigh of relief. All banks under our coverage, even if we assume full deduction of regulatory adjustments, meet the 4.5% shorter term target," it said.
OSK Research said Public Bank will have to raise capital but only to meet the longer term 7% goal.
"CIMB and Maybank are the biggest beneficiaries as they have excess capital which can be returned as dividends or used to generate faster asset growth," it said.
The research house maintained its Overweight on Banks with CIMB (fair value: RM8.70), Maybank (FV: RM9.25) and RHBCap (FV: RM7.85).
The research house issued the report on Monday, Sept 13 after the Basel committee decided to raise minimum common equity requirement from 2% to 4.5% by 2015 with an additional 2.5% buffer by end 2018. The longer term target as of 1 Jan 2019 is 7%
"This 7% longer term target is at the lower end of the 6%-9% range the market was expecting. So everyone can breathe a sigh of relief. All banks under our coverage, even if we assume full deduction of regulatory adjustments, meet the 4.5% shorter term target," it said.
OSK Research said Public Bank will have to raise capital but only to meet the longer term 7% goal.
"CIMB and Maybank are the biggest beneficiaries as they have excess capital which can be returned as dividends or used to generate faster asset growth," it said.
The research house maintained its Overweight on Banks with CIMB (fair value: RM8.70), Maybank (FV: RM9.25) and RHBCap (FV: RM7.85).
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