By Ying Xian Wong
Malayan Banking is scheduled to report results for its third quarter on Tuesday. Here is what you need to know:
NET PROFIT: Maybank is expected to record quarterly net profit of 2.55 billion ringgit, equivalent to $570.7 million, according to the consensus estimate of analysts in a Visible Alpha poll. That would be an 8.1% increase from a year earlier and up slightly from 2.53 billion ringgit in the second quarter. In August, the lender said its first-half earnings rose 9.0% from a year ago to 5.02 billion ringgit, supported by solid growth in noninterest income.
NET INTEREST INCOME: Quarterly net interest income likely rose 18% to 3.74 billion ringgit, according to Visible Alpha. Net interest income for the first six months of 2024 was 6.35 billion ringgit, compared with 6.44 billion ringgit a year ago.
Maybank's shares have been on an uptrend since August, driven by optimism over the Federal Reserve's easing cycle. However, its shares have weakened recently due to concerns about Donald Trump's U.S. presidential re-election. The stock has risen about 15% so far this year.
WHAT TO WATCH:
--NET INTEREST MARGIN: Maybank's net interest margin could remain relatively stable in the third quarter as the management focuses on scaling back expansion in the lower-yielding mortgage segment, reducing its aggressive pursuit of deposits and further optimizing funding costs, Hong Leong Investment Bank analyst Chan Jit Hoong said in a note. Maybank revised its 2024 net interest margin forecast to about 10 basis points lower from a compression of 5 basis points, following an 11-basis-point contraction in the first half, CGS International analyst Winson Ng said.
--LOAN GROWTH: Maybank guided for loan growth to slow to 7%-8% in the second half as it prioritizes growth in key areas to safeguard interest margins, AmInvestment Bank analyst Kelvin Ong said in a note. Mortgage loan growth is also set to decelerate to maintain profitability, he said.
Write to Ying Xian Wong at yingxian.wong@wsj.com
(END) Dow Jones Newswires
November 24, 2024 21:33 ET (02:33 GMT)
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