Share Price: RM10.70 | Target Price: RM11.60 | Rating: Neutral
Malayan Banking’s 4Q24 results are in line, while its FY24 reported ROE of 11.1% met the 11% guidance. A slightly lower-than-expected DPS, however, was a dampener as the payout ratio for FY24 eased to 73% from 77% in FY23. Management guided for more modest loan growth this year, supported by stable NIM and credit cost. We raise our earnings forecasts, but made larger cuts to FY25-26F DPS on a lower payout ratio assumption of 70% (from 76%). Nevertheless, our revised DPS still yields an attractive 6%.
MAYBANK Results Update for Q4 Ending 31/12/24
Research House: RHB Investment Bank (RHBIB)
Analyst: David Chong, Nabil Thoo
FY2025 Forecast: Net Profit: RM10,673m | EPS: RM0.88 | DPS: RM0.62