Maybank loans under assistance down to 15pc
Published on: Tuesday, December 01, 2020
By: Bernama
.jpg "Maybank loans under assistance down to 15pc")
Kuala Lumpur: Malayan Banking Bhd’s (Maybank) loans that are under assistance have gone down to 15 per cent as at Nov 12 compared with 70 per cent during the six-month automatic moratorium period of April-September.RHB Investment Bank Bhd said in a note that of the total, 43 per cent were granted an additional three-month moratorium to Dec 31.
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“We raised Maybank’s 2020-2021 financial years’ profit after tax and minority interests (PATAMI) projections by two to four per cent following tweaks to operating income forecasts. We also bumped up credit cost for financial year 2020 (FY20),” it said.
RHB maintained its “buy” call on Maybank with its target price 18 per cent higher at RM9.80, on higher return on equity assumptions.
On Friday, the fourth largest bank in Southeast Asia announced that its third quarter ended Sept 30, 2020 net profit came in at RM1.95 billion compared with RM2.0 billion in the same quarter last year, which was attributed to the continued impact from the Covid-19 pandemic.
In a separate note, Public Investment Bank said Maybank’s net profit was sequentially stronger in the absence of Day-One net modification losses charged in the immediate preceding quarter, as fee income also improved due to higher commission and brokerage fees.
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