According to Maybank’s Investor Relation team, the group clarified that it is planning  a  Samurai  bonds  issuance  in  respect  of  working  capital  and general  banking  needs  for  a  foreign  entity.  The  exact  amount,  tenor  and coupon of the bonds are yet to be determined. (Source: Maybank)

Comments: We reiterate our HOLD rating on Maybank at our price target of RM8.55  based  on  a  1.35x  P/BV  target,  on  2016’s  ROE  of  11.6%.  The challenges  in  2015  remain,  owing  to  a  lack  of  catalyst  in  the  domestic capital  markets,  moderation  in  domestic  loan  growth  (with  GST  kicking-in and  slower  business  expansion),  competitive  pressure  from  bigger Indonesian banks (on BII’s operations) and decline in non-interest income.

Source: Affin Hwang Capital Research - 8 Apr 2015