Results within. HL Bank's 1QFY12 net profit of RM407m (+40% QoQ, +58% YoY) was within expectations, coming in at 26% of our full-year forecasts and consensus. While fundamentals of the group remain solid post-merger, much of the positives are reflected in its current share price, in our view. Merger benefits are unlikely to flow through just yet, but integration costs will continue to feature. Our Hold call is maintained with an unchanged TP of RM10.60 (1.6x 2012 P/BV, ROE: 14.4%).

Maybank research (30 November 2011)

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