Maybank's NIM Could Face Pressure from Funding Costs

Dow Jones
Aug 28

0112 GMT - Malayan Banking's net interest margin could remain under pressure in 2H on intensifying deposit competition and higher funding costs in Malaysia, as well as unfavorable asset-liability repricing in Singapore and Indonesia, Hong Leong IB analyst Raymond Ng says in a note. Additional funding for the Ageas acquisition could add further pressure, although improving loan momentum should provide some offset, he says. Fee income is expected to remain supported by wealth and investment banking, while a recovery in global markets could ease the 1H drag. Higher technology spending may keep costs elevated, while rising gross impaired loans across auto, mortgages and small and medium-size enterprises warrant monitoring, he adds. Hong Leong maintains a hold rating on Maybank and keeps its target price at 11.10 ringgit. Shares are 0.8% higher at 10.70 ringgit.

 

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