Maybank and CIMB Group saw their share prices decline this week, closing at RM9.35 and RM6.50 respectively. Analysts attribute the pressure to rising regional competition, particularly from digital banks, and challenges to traditional interest income streams.
Malaysia's two largest banking giants, Malayan Banking Bhd (Maybank) and CIMB Group Holdings Bhd, both recorded declines in their share prices this week. Maybank fell by 1.06% to RM9.35, while CIMB Group dropped by 1.52% to RM6.50. Market analysts noted that despite the banks' solid fundamentals, investors are showing concern over the increasingly competitive landscape in Southeast Asia, particularly challenges from digital banks in Singapore and Indonesia. Furthermore, the uncertainty surrounding global interest rate prospects could also impact their future net interest margins. Nevertheless, analysts generally believe that both banks' dividend yields remain attractive for long-term investors. They anticipate that the banks will respond to these challenges through digital transformation and cost optimization efforts.
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