RHB Capital has much cleaner slate, says HLIB Research

KUALA LUMPUR, Feb 25 — Hong Leong Investment Bank Research has maintained its “buy” call on RHB Capital with a target price of RM9.59, reckoning it entered 2014 with a much cleaner slate.

In a research note today, the research house said it remains positive about RHB Capital’s prospects as a significant lumpy provision was made in its fourth quarter of financial year 2013 to settle uncertainties once and for all.

Hong Leong analysts have adjusted RHB Capital’s earnings forecast for 2014-2015 marginally higher by less than one per cent.

RHB Capital’s net profit for financial year 2013 rose three per cent to RM1.83 billion versus the previous year.

Another research house, Maybank Investment, said RHB Capital’s result was above its forecast by five to six per cent, attributing it to the much faster-than-expected RHB’s expansion in non-interest income.

Maybank predicts RHB capital’s earnings forecast for 2014-2016 to be marginally higher by two to three per cent on higher non-interest income assumptions.

Maybank has maintained its “hold” call on RHB Capital, on a revised target of RM8.40. — Bernama