MONEY MASTER

  Maybank (KL:MAYBANK) Net Profit : RM2.63b (+4% YoY) EPS : 21.75 sen NII : +1.1% YoY NOII : Higher, supported by fees and trading Provisions : Higher bad debt charges, but offset by income growth Dividend : 30 sen  first interim cash dividend  (dates TBD) Guidance : Reaffirmed FY2025 ROE target ≥ 11.3%  Takeaway : Resilient earnings with strong dividend payout. Higher provisions are a watchpoint, but Maybank remains attractive for income-focused investors. Public Bank (KL:PBBANK) Net Profit : RM1.76b (-1% YoY) NII : +5.1% YoY NOII : +15% YoY Drag Factor : Lower non-taxable income pressured bottom line Asset Quality : Remains strong with prudent loan loss reserves Dividend : 10.5 sen  first interim dividend , ex-date Sept 12, payable Sept 24 Takeaway : Profit dipped slightly, but underlying income growth is strong. Public Bank maintains its hallmark of  asset quality discipline and steady dividends , though its yield trails Maybank’s more generous payout. ...

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 gr...

Japanese banks are off to a strong start this fiscal year, with  Mizuho Financial Group Inc  raising its annual profit forecast to a record  ¥1.02 trillion (US$6.9B)  after posting better-than-expected first-quarter results. Key Highlights: Mizuho:  Net income rose 0.4% YoY to ¥290.5B in Q1; full-year profit forecast lifted from ¥940B to ¥1.02T. Sumitomo Mitsui:  Q1 profit hit ¥376.9B, reaching 29% of its full-year goal of ¥1.3T. Both banks beat analyst estimates and saw gains in  net interest income  as lending margins improved. Drivers: Higher Interest Rates:  Japanese lenders are benefiting from improved margins after the Bank of Japan ended its ultra-easy monetary policy last year. Trade Deal Optimism:  A recent US-Japan tariff agreement and a resurgent stock market added momentum to bank shares. Mizuho stock is up 16% YTD; Sumitomo Mitsui gained 2.4%. Lower Risks:  Mizuho expects  smaller bad-loan costs  and gains fro...

Bank of Tianjin Co., Ltd. (HKG:1578) delivered a  42% share price gain  over the past year, significantly outperforming its earnings per share (EPS) growth of just  1.2% . The total shareholder return (TSR), which includes dividends, was even higher at  54% , suggesting strong investor sentiment despite modest underlying profit growth. Market Sentiment Boost The sharp rise in the stock compared to earnings growth indicates the market now places a higher value on the company than a year ago. Over three years, the share price is up  20% , showing steady but slower long-term performance. Dividends Matter TSR outpacing share price return highlights the role of dividends in boosting investor gains. Bank of Tianjin’s consistent payouts contributed significantly to the overall return. CEO Pay and Fundamentals The company’s CEO earns less than peers at similar-sized banks, which some investors view positively. However, the key question remains whether the bank can accel...

RHB Bank Bhd has unveiled its ambitious three-year strategy,  PROGRESS27 , which promises to enhance profitability, service quality, and sustainability from FY25 to FY27. While some of these targets appear to be on the higher end, analysts remain optimistic about the bank's ability to achieve them. Key Targets in PROGRESS27: Return on Equity (ROE):  Aiming for  over 12% . Cost-to-Income Ratio:  Targeted below  44.8% . Domestic Loan Growth:  Aiming for  7% annual growth . Fee-Based Income Growth:  Projected to grow by  10% annually . Despite these ambitious targets, analysts from  CIMB Securities  and  MIDF Research  have expressed confidence, largely due to RHB's strong financial performance and current trajectory. CIMB has raised its target price for RHB to  RM8.20  from  RM7.50 , while MIDF maintains its target at  RM7.40 . Strategic Focus: RHB’s PROGRESS27 strategy is focusing on higher-yielding segm...

Shares of major US banks, including Goldman Sachs, JPMorgan, and Citigroup, soared after Donald Trump’s election win, with investors optimistic about tax cuts and deregulation under his administration. Trump has pledged to reduce the corporate tax rate from 21% to as low as 15% and eliminate excessive regulations—a contrast to Kamala Harris’s tax-raising plans. Goldman Sachs rose 13%, with JPMorgan up 12% and Citigroup up 8%, hitting multi-year highs. An ETF tracking major bank stocks also saw its best rise in four years. Analysts predict a friendlier regulatory environment that could lift bank profitability, particularly through increased dealmaking and capital markets activity. Trump’s return could also disrupt the Basel capital rules, with speculation that he may reduce capital requirements for US banks, according to Bloomberg Intelligence. Wells Fargo’s Mike Mayo noted this could lead to a “capital markets super-cycle” as deal activity rises. On the global front, European...

  HSBC Holdings has announced a significant restructuring, splitting its geographic operations into East and West divisions under the leadership of new CEO Georges Elhedery . The revamp also includes the appointment of Pam Kaur as the bank’s first female Chief Financial Officer (CFO) . The restructuring merges some of HSBC's commercial and investment banking operations and aims to streamline leadership, creating four business lines: UK, Hong Kong, corporate and institutional banking, and wealth banking . The Eastern Markets division will cover Asia Pacific and the Middle East , while the Western Markets division will encompass Continental Europe, the Americas, and the UK (excluding retail banking) . Elhedery said the overhaul would "unleash our full potential" and emphasized the need to bolster cooperation between divisions. By combining commercial and investment banking — except in Hong Kong and the UK — HSBC aims to boost cross-selling to its 1.2 million busine...

RHB Bank Bhd is expected to report stronger results in the upcoming quarter, driven by widening margins and robust loan growth , according to Hong Leong Investment Bank . The bank’s net interest margin is projected to hold up well, even amid recent currency fluctuations, with loan growth remaining solid at 6.5%-7.0% for 2024. Following a recent meeting with RHB, Hong Leong expressed optimism, raising its net profit forecasts by 4%-5% for FY2024-FY2026 and increasing the target price (TP) to RM7.30 from RM6.75 . This revision reflects expectations of sustained loan growth and strong non-interest income . RHB shares have risen 15% this year, and the bank continues to attract positive sentiment from analysts, with nine 'buy' ratings and a consensus 12-month TP of RM6.65 . The research house also highlighted RHB’s focus on issuing cheaper sukuk , reducing fixed deposit rates, and maintaining its market share in key segments like mortgages and auto finance . Looking ahead...

UK Chancellor Rachel Reeves will meet with top executives from the country's six largest lenders later this week to discuss new bank capital rules. The meeting follows the UK’s announcement of its final plans for implementing the last phase of post-crisis reforms, expected on Thursday. Key Takeaways: Attendees and Purpose : The meeting will include chief executives from major UK banks such as HSBC, Barclays, NatWest, Lloyds Banking Group, Nationwide Building Society, and Banco Santander’s UK arm. Bank of England (BOE) Governor Andrew Bailey and Sam Woods, head of the BOE’s regulatory arm, will also attend. The focus is on the new capital requirements set under the Basel Committee on Banking Supervision. Regulatory Concerns : UK banks are concerned that the new rules could disadvantage them compared to their European and US rivals, who may face less stringent requirements. UK regulators, however, have committed to faithfully implementing the 2017 international rules, even as the EU ...

Standard Chartered has consolidated its industries coverage team into its dedicated mergers and acquisitions (M&A) advisory unit, resulting in the elimination of more than 20 roles globally. The restructuring is part of a broader effort to reduce duplication and streamline operations within the bank, according to a source familiar with the matter. Key Highlights: Team Consolidation: The industries coverage team has been absorbed into the M&A advisory team, effectively doubling the size of the M&A unit to over 100 bankers. Job Reductions: While some roles from the dissolved industries team will be integrated into the bank's wider coverage and capital markets teams, approximately two dozen positions will be cut to avoid overlap. Strategic Reorganisation: This move is part of a larger reorganisation announced on March 12, aimed at enhancing the bank's focus on key cross-border clients and improving accountability within its corporate and investment banking division....

China Bohai Bank Co, partly owned by Standard Chartered plc, proposed to sell US$3.5 billion (RM16.39 billion) worth of assets at a discount to bidders, including the nation’s bad debt managers, to shore up capital levels. Key Takeaways: Asset Sale Details : The assets, with a principal amount of 25.6 billion yuan (RM16.39 billion), will be disposed of in a public tender to potential bidders, including China’s big four bad banks led by China Cinda Asset Management Co. Comparison to NPLs : The amount Bohai Bank is seeking to sell is 54% more than the 16.6 billion yuan non-performing loans (NPLs) it reported at the end of last year. The bank also had 28.9 billion yuan in special mention loans at the end of last year. Stakeholder Implications : Standard Chartered owns 16.26% of Bohai Bank and has taken significant impairments on its stake, amounting to US$1.46 billion as of the end of 2023. Market Challenges : China’s banks are grappling with rising bad debt following a real estate market...

The European Central Bank (ECB) is set to delay the outcome of its large-scale investigation into high-risk leveraged loans, responding to significant pushback from banks. This decision underscores the complexity and sensitivity of regulating the leveraged finance sector in a high-interest-rate environment. Key Points: Investigation Delay : The ECB will likely postpone the release of its findings on leveraged loans until at least September, initially planned for this month. The delay comes in response to substantial criticism from banks about the probe's execution. Bank Complaints : Banks criticized the ECB’s approach, claiming outside consultants and ECB staff lacked a deep understanding of their specific lending practices. Complaints included mislabeling loans as nearing default or in default despite continued debt servicing by companies. Regulatory Adjustments : The ECB may lower its demands for additional loan loss provisions compared to earlier conveyed findings. Ongoing discu...

Retain HOLD with a higher target price (TP) of RM5.00 Highlights Outlook improving.  We are turning more positive on AMMB as previous concern on various issues is now easing while management recently guided on a more upbeat outlook with a higher loan growth projection for FY18. Higher loan growth in FY18 . For several years, AMMB’s loan growth was impacted by its rebalancing effort, especially to diversify away from hire purchase segment. We believe AMMB is now comfortable with current composition of hire purchase loan given the corrected yield in the segment reinforced by improving 2017 TIV outlook. Given this, we believe AMMB will achieve a loan growth of 6% in FY18, which majority will be driven by corporate and SME segments. Various tie-ups in SME space.  We notice that AMMB had recently made various tie-ups with SME related organizations to offer financing to this segment. Overall, we are positive on these tie-ups on future contribution to the SME segmen...