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



The first quarter financial year 2011 net profit for Malayan Banking Bhd (Maybank), is within expectations, said MIMB Investment Bank Bhd in a research note today.

With the improved operating environment and earnings prospect especially in Indonesia, the research house has fine-tuned its financial year 2011 and 2012 net profit estimates by 3.4 per cent and 0.9 per cent respectively.

"Even so, we reckon that the calendar year 2011 fair value of Maybank should be pegged at RM9.46, representing a price to book ratio of 2.3x and 2.2x for financial year 2011 and 2012 respectively," it said.

MIMB has downgraded the stock from a trading buy to neutral.
Maybank's first quarter financial year 2011 net profit of RM1.0 billion grew 16.6 per cent and 12.7 per cent on year-on-year and quarter-on-quarter respectively.

" The result is pretty much in-line with our previous full year estimates of RM4.09 billion. With the improved operating environment and earnings prospect, especially in Indonesia, we have revised our estimations.

"We have revised upward the estimated financial year 2011 and financial year 2012 net profit to RM4.23 billion and RM4.52 billion respectively, from the RM4.09 billion and RM4.48 billion," it added. -- Bernama