Expect significant new tariffs on Chinese imports and moderate levies on goods from other nations , as President-elect Donald Trump rolls out his protectionist agenda. However, with his preference for chaotic policymaking and sudden shifts , there’s uncertainty on how soon these import taxes will actually hit. Dubbed “ Tariff Man ,” Trump aims to use tariffs both strategically and tactically . He’s mentioned taxing all Chinese goods up to 60% and potentially setting 10%-20% tariffs on imports globally , but details on these plans remain vague . Key players within Trump’s team are divided: Robert Lighthizer , a staunch tariff advocate, sees permanent duties as crucial to balance US trade , while others, like billionaires John Paulson and Scott Bessent , view tariffs as temporary leverage. Trump’s previous administration had mixed feelings, especially on national security-related trade limits , which he sometimes dismissed, favoring an “open for business” approach. High-profile busin
Alliance Bank Malaysia Bhd is poised to achieve record profit for the financial year ending March 31, 2025 (FY2025), driven by steady growth in loans and non-interest income. The bank's performance in the first quarter ended June 30, 2024 (1QFY2025), accounted for about 24% of the consensus full-year forecast of over RM730 million.
Key Takeaways:
Strong Growth Across Business Segments: Alliance Bank has demonstrated robust growth across its various business segments. Analysts, including TA Securities, have upgraded their outlook for the bank, citing positive indicators such as lower market risk premiums, a healthier economic environment in Malaysia, stable interest rates, and improved investor sentiment. TA Securities raised its target price (TP) for Alliance Bank to RM5, upgrading its recommendation to 'buy.'
Positive Market Sentiment and Share Performance: Alliance Bank's shares have risen 28% year-to-date, reflecting a broader rally among banking stocks in Malaysia, buoyed by increased foreign inflows amid the country's improving economic growth outlook. A majority of analysts remain bullish, with 10 'buy' ratings, four 'hold' ratings, and no 'sell' calls. The consensus 12-month TP is now RM4.72, suggesting a potential gain of 9.51% from the current share price.
Mitigating Challenges and Maintaining Margins: While CIMB Securities cautioned that loan growth might taper as Alliance Bank aims to maintain margins, lower fixed deposit rates amid easing competition and cost-optimization initiatives are expected to help sustain margins. RHB Investment Bank noted that any potential squeeze in the net interest margin could be mitigated by increased non-interest income from treasury and markets.
Alliance Bank is targeting a return on equity (ROE) above 10%, loan growth of 8% to 10%, and a net interest margin of 2.40% to 2.45% for FY2025. The bank's current performance and favorable economic conditions suggest it is well-positioned to meet these targets.
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