Analysts positive on Maybank’s FY2021 earnings outlook

Research houses are optimistic on Malayan Banking Bhd’s earnings outlook for financial year 2021 . — Picture by Ahmad Zamzahuri
Research houses are optimistic on Malayan Banking Bhd’s earnings outlook for financial year 2021 . — Picture by Ahmad Zamzahuri

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KUALA LUMPUR, May 28 — Research houses are optimistic on Malayan Banking Bhd’s earnings outlook for financial year 2021 (FY2021), following the banking group’s better-than-expected earnings performance in the first quarter this year (Q1 FY2021). 

Yesterday, the banking group reported that its net profit soared to RM2.39 billion in Q1 FY2021 from RM2.05 billion in the same period last year, as its loans segment had picked up its pace on improving economic outlook, while overhead expenses and impairments declined.

In a note today, MIDF Research revised its earnings forecast for Maybank’s FY2021 ending December 31, 2021 upwards by 5.2 per cent.

“The group’s Q1 FY2021 earnings were much better than expectations. It came in at 32.2 per cent and 34.7 per cent of our and consensus’ full-year estimates, respectively,” it said.

While there are short term headwinds in view of the resurgence in Covid-19 cases, MIDF believed that Maybank will be able to weather it and could look forward to better performance for FY2021 and FY2022 following the vaccine rollouts.

“However, we are maintaining our FY2022 and FY2023 earnings forecast,” it said.

The research firm has also re-affirmed its “buy” call for Maybank, with a revised target price (TP) of RM8.90 from RM8.70 previously. 

In the meantime, AmInvestment Bank said Maybank’s Q1 FY2021 core net profit was within its expectation, accounting for 30.4 per cent of its projection.

“Its loans segment grew at a faster pace of 3.1 per cent year-on-year, led by the expansion of consumer loans in Malaysia and Singapore, although loans in Indonesia continued to contract,” it said in a note today.

It also maintained its ”buy” call on Maybank’s shares, with a revised fair value (FV) of RM10.40 per share from RM10.10 per share previously.

Meanwhile, Public Investment Bank lifted its FY2021-FY2023 estimates for Maybank by 5.4 per cent, on average.

“While near-term prospects of the group may still be weighed by pockets of asset quality challenges, we continue to like the group’s longer-term prospects,” it said.

In its note, the research firm has maintained its “outperform” call on Maybank, with an unchanged TP of RM9.30. — Bernama

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