Houses Maintain Buy Call On Maybank As FY25 Results Met Forecast
RHB Investment Bank Bhd (RHB Research), CIMB Investment Bank Bhd (CIMB Securities), and Hong Leong Investment Bank Bhd (HLIB) all maintained a BUY call on Malayan Banking (Maybank), with target prices ranging from RM13.00 to RM13.30, citing solid FY25 earnings and resilient operations.
RHB Research highlighted a 10% upside to RM13.20, supported by a circa 6% FY26 dividend yield, while CIMB Securities and HLIB noted steady returns and the bank’s strategic ROAR30 plan for progressive ROE expansion.
Maybank posted FY25 net profit of RM10.5 billion, up 4.2% year-on-year, with 4QFY25 core net profit of RM2.67 billion, reflecting a 5.7% quarterly increase and 2.1% year-on-year growth.
Results were broadly in line with forecasts, representing around 101% of both consensus and analysts’ full-year estimates. The second interim dividend of 33 sen per share brought total FY25 dividends to 63 sen, translating to a payout ratio of approximately 70%.
Net interest margin (NIM) rose 7 basis points quarter-on-quarter to 2.09%, supported by effective liability management, including lower-cost funding and deposit repricing, while fund-based income increased. Non-interest income was weaker, reflecting softer treasury gains.
Loan growth remained modest at 1.7% year-on-year, but domestic lending expanded 6.1%, and asset quality remained steady, with the gross impaired loan ratio improving to 1.28% and a management overlay of RM2.3 billion providing additional buffers.
Looking ahead, Maybank set FY26 guidance with a targeted ROE of at least 11.8%, NIM between 2.05% and 2.10%, loan growth of 4–5%, and credit costs around 20 basis points.
Analysts noted the bank’s focus on balance sheet optimisation, selective growth in fee-based income, and disciplined capital deployment, including the potential progressive release of trapped capital across subsidiaries.
Dividend payout is expected to remain at circa 70%, with any special distributions subject to board and regulatory approval.
As of 11.36 am, the stock price decreased 0.33% to RM11.96.
