Maybank BUY Target Price RM10.07 by OSK Research

MALAYAN BANKING BHD shares advanced on Friday, May 13 after the bank said it ''expects earnings for FY11 ending June 30 to surpass the record net profit it achieved in FY10.

Maybank's net profit for 3QFY11 rose 11%''to RM1.14 billion from RM1.03 billion.

At 9.35am, Maybank was up 16 sen to RM8.90 with 329,700 shares traded.

Maybank's revenue for the three months in review was 11.8% higher at RM5.13 billion compared with RM4.6 billion a year ago.

Maybank said on Thursday, May 12 that the results were boosted by strong loans growth, increased revenues across almost all business segments of the group and significantly lower allowance for losses on loans which declined by almost half.

OSK Research in a note May 13 maintained its buy call on Maybank with a target price of RM10.07.

'Its previously conservative provisioning coupled with continued improvement in asset quality are beginning to bear fruit, with loan loss provisions declining 49.8% q-o-q.

'The combination of continued improvement in domestic asset quality, loans growth traction and benefits from the rising interest rate environment will boost the group's earnings momentum in FY12,' said OSK Research.


Hotels close to Maybank Headquarters in Kuala Lumpur, as well as the iconic Maybank Tower in Singapore.