NET PROFIT FORECAST
Maybank is projected to achieve a net profit of 9.26 billion ringgit ($1.94 billion) for 2023, an increase from MYR8.23 billion in 2022. The bank reported a 21% rise in nine-month earnings last quarter, reaching MYR6.96 billion, supported by reduced impairments and stronger non-interest income.
NET INTEREST INCOME FORECAST
The full-year net interest income is expected to reach MYR13.86 billion, slightly lower than the previous year’s MYR13.83 billion. Net interest income for the first nine months of 2023 declined by 6.8% year-on-year to MYR9.6 billion.
Key Considerations
NET INTEREST MARGIN
Analysts suggest that Maybank’s net interest margin may have improved in the fourth quarter due to limited competition from other lenders. Shifting focus away from high-interest deposits and towards other business segments likely contributed to boosting margins.
LOAN GROWTH
Positive indicators point towards promising loan growth figures, with management hinting at continuing momentum in domestic mortgages and mid-corporate loans throughout the fourth quarter of 2023.
Maybank’s shares have been experiencing an uptrend since October, driven by expectations of improved earnings and a positive market sentiment, resulting in a 6.9% increase in stock value since the beginning of the year.
