KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
Earnings Snapshot
Malayan Banking Bhd (KL:MAYBANK), Malaysia’s largest lender by assets, reported a net profit of RM2.63 billion for 2QFY2025, up 4% year-on-year from RM2.53 billion. Earnings per share stood at 21.75 sen.
Net Interest Income (NII): +1.1% YoY, reflecting stable loan growth and net interest margin support.
Non-Interest Income (NOII): Rose, providing a boost despite softer trading conditions.
Provisions: Higher allowances for bad debts partly offset the income gains.
Dividend Declaration
Maybank declared a first interim cash dividend of 30 sen per share, with entitlement and payment dates to be announced later. This reflects the bank’s continued focus on shareholder returns.
Guidance
Management reiterated its FY2025 Return on Equity (ROE) target of at least 11.3%, signaling confidence in sustaining profitability despite elevated provisions and a cautious economic outlook.
Investment Takeaways
Resilient Core Business: Loan growth and fee income continue to support topline strength.
Dividend Yield Appeal: At 30 sen interim payout, Maybank maintains its reputation as a high-yield banking stock, attractive to income-focused investors.
Credit Costs a Watchpoint: Rising provisions hint at asset-quality pressures amid macro uncertainties.
Bottom Line: Maybank delivered steady earnings growth, underpinned by diversified income streams. While provisions remain a risk factor, its robust dividend policy and reaffirmed ROE target should reassure investors looking for stability in Malaysia’s financial sector.
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