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Preferred stock broker view: Malay Bank Q4 revenue expected to be stronger, maintain overweight

With interest rates rising and the positive impact of these rate increases on their financial performance, bank stocks have done relatively well this year.。Malaysia's largest bank by market capitalisation and by total assets, Bank Malaya just released its third quarter financial results for fiscal 2022 last week.。

首选股经纪人观点:马来银行第四季度收入预计更强劲,维持增持

CGS-CIMB Analyst Views

With interest rates rising and the positive impact of these rate increases on their financial performance, bank stocks have done relatively well this year.。Malaysia's largest bank by market capitalisation and by total assets, Bank Malaya just released its third quarter financial results for fiscal 2022 last week.。While Malaya Bank, or Banco Ma for short, made only 73% of its full-year forecast in the first nine months of fiscal 2022, the research team believes this is within their expectations.。This is because the CGS-CIMB Securities research team expects a stronger financial performance in the fourth quarter.。The research team at CGS-CIMB Securities reiterated its "overweight" recommendation for Bank of Malaysia and maintained its target price of 10.30 ringgit。Here are some of the highlights of Bank of Malaysia's latest earnings report。

9MFY2022 Net Profit Growth 0.5%, good performance

Although Bank of Malaysia's net profit for the first nine months of fiscal 2022 increased by only 0.5%, but given the higher effective tax rate of 30 for 9MFY2022.3%, which the CGS-CIMB Securities research team considers a commendable performance。The higher tax rate is due to the Cukai Makmur tax。On the earnings-driven side, this was due to a 15% increase in net interest income (NII) and an 8% increase in non-interest income..9%。The higher NII was due to net interest margin (NIM) expansion, while non-interest income growth was attributed to improved investment income.。

Q3 earnings net profit growth strong despite higher tax rate

Despite the impact of the tax rate, Ma Bank's net profit in the third quarter of fiscal 2022 increased by 28% year-on-year..5 per cent, mainly due to a 14 per cent increase in net interest income and a significant increase in non-interest income of 45 per cent..8%, investment income improved, and provision loans fell by 25.4%。Compared to the previous quarter, Bank of Malaysia's net profit also maintained its growth momentum, up 17% year-on-year..4%。This increase was mainly driven by an increase in non-interest income and a decline in provision loans.。

Strong Q4 revenue growth will drive earnings growth

The CGS-CIMB Securities research team expects net profit in the fourth quarter of fiscal 2022 to grow 1.2% to 21.RM900m, earnings up 6.5%, thanks to continued expansion of net interest margin and recovery in non-interest income。

Reiterate Overweight Rating, Maintain Target Price

For BMA, the CGS-CIMB Securities research team reiterated its "overweight" rating, saying that Indonesia's loan growth is strong and is expected to exceed 10% in fiscal 2022, while the continued expansion of net interest margin and the recovery of non-interest income will drive its reassessment.。Investors will also like Bank of Malaysia's attractive dividend yield of 4 in fiscal 2022..9%。The CGS-CIMB Securities research team maintains its 2022-2024 earnings per share forecast and maintains a target price of 10 based on a discounted dividend model..30 ringgit。

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Contents
CGS-CIMB分析师观点
9MFY2022净利润增长0.5%,表现良好
尽管税率较高,Q3财报净利润增长强劲
Q4收入增长强劲,将推动盈利增长
重申增持评级,维持目标价