Maybank and CIMB Group announced better-than-expected fourth-quarter results, leading analysts to upgrade their target prices and ratings. The strong performance, driven by improved net interest margins and lower impairment allowances, signals a positive outlook for the banking sector, attracting increased investor interest in these blue-chip counters.
Malaysia's two largest banking giants, Malayan Banking Bhd (Maybank) and CIMB Group Holdings Bhd, announced better-than-expected financial results for the fourth quarter of fiscal year 2025 this week. Maybank reported a 12% year-on-year increase in net profit to RM2.45 billion, while CIMB Group's net profit surged by 15% to RM1.98 billion. Both banks benefited from improved net interest income, robust loan growth, and lower impairment allowances. Following these positive announcements, several investment banks have upgraded their target prices and ratings for both counters. Analysts generally believe that the Malaysian banking sector's profitability will continue its strong momentum amidst economic recovery and a stable interest rate environment. This positive development has also boosted investor confidence across the entire financial sector.
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