CGS-CIMB reiterated its "add" call on Maybank, with an unchanged target price (TP) of RM10.30. This is premised on potential rerating catalysts from its expectations of strong loan growth in Indonesia of more than 10% in 2022, continuous expansion in the net interest margin amid the overnight policy rate upcycle, and recovery in non-interest income.
Meanwhile, Public Investment Bank Bhd (PIVB) said there was no repeat of 2QFY2022’s pre-emptive loan loss provisions when Maybank reported its 3Q results, an encouraging development considering the expectedly weaker macro environment going forward.
"Near-term challenges notwithstanding, we continue to like the group’s prospects, underpinned by its M25+ initiatives, and retain our ‘outperform’ call with an unchanged TP of RM9.70," it said in a note.
UPDATED THU, NOV 10 20228:33 AM EST SHARE Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via Email Dow futures surge more than 600 points after October inflation report is lighter than expected
“This has been one of the best months (so far) in the history of the Dow, suggesting the bear market likely ended,” said Ryan Detrick, chief market strategist at Carson Group in Omaha. “Big monthly moves historically happen at the end of bear markets.”
“This is the second Friday in a row we’ve seen aggressive buying suggesting investors are growing more comfortable holding over the weekend,” Detrick added.
This new CEO was probably chosen based on his track record while he was CEO at RHB (he did a good job at improving returns there)....PNB is the major shareholder and they want high returns to enhance dividend for their unit holders, so, how can dividend be lower when loan growth is projected to improve at a higher rate of 7%......and ROE is projected to improve by 10 to 20% from current level.....
ROE of 11 to 12% is lower than earlier projection BUT it is still 10 to 20% higher than historical ROE of slightly below 10%. With a projection loan growth of 7% (which is higher than current historical of 3%) dividend for coming years should probably be higher.