MAYBANK (1155): Unlocking Super Growth in Key Strategic Segments
Summary (TL;DR):
- Research Firm: TA Investment Bank
- Subject: MAYBANK / MAYBANK (1155)
- Core Rating: BUY
- Target Price / Top Picks: MYR 11.40
- One-Liner: Maybank is poised for “super growth” by strategically focusing on high-potential segments like Group Wealth Management, Mid-Market, and Global Market – FX Sales under its M25+ strategic plan.
Report at a Glance
TA Investment Bank released its latest research report on MAYBANK on 2025-07-07, maintaining a “BUY“ rating with a target price of MYR 11.40. The core thesis of the report is that Maybank is strategically unlocking value from high-potential business segments – Group Wealth Management, Mid-Market Segment, and Global Market – FX Sales – as outlined in its M25+ strategic plan.
Investment Thesis (The Bull Case)
- Point 1: Maybank is strengthening its Wealth Management capabilities by leveraging its regional footprint, market-leading Islamic banking position, and digital enablement to deliver bespoke wealth solutions, with initiatives like Forest City’s MM2H Value Proposition and Single-Family Office solutions.
- Point 2: The bank is strategically transforming to dominate Malaysia’s Mid-Market segment, establishing a standalone business with dedicated teams and a unified relationship model, and capitalizing on growth hotspots in Penang, Johor, and Sarawak, showing strong momentum in investment banking deals.
- Point 3 / Key Beneficiaries: Maybank’s Global Markets – FX Sales division is a critical engine for regional expansion, broadening its FX ecosystem through digital channels (e.g., Global Access Account-i with 20,000+ subscriptions) and consistently maintaining a top-three ranking in Bank Negara Malaysia’s FX league tables.
Potential Risks (The Bear Case)
- Risk 1: The wealth management space is becoming increasingly competitive, with both local and regional players intensifying their efforts.
- Risk 2: The ambitious goal of capturing over 80% of Malaysia’s mid-market segment may be challenging given other banks are also focusing on these strategic regions.
- Risk 3: The FX business remains largely driven by flows and is sensitive to retail and business sentiment, which could be impacted by ongoing macroeconomic volatility.
Financial Forecast Summary
The analyst’s financial projections for the coming years are as follows:
| Fiscal Year (YE to Dec) | FY25F | FY26F | FY27F |
|---|---|---|---|
| Revenue (RM mil) | 31,315 | 33,125 | 35,375 |
| Net Profit (RM mil) | 10,436 | 11,041 | 11,822 |
| EPS (sen) | 86.4 | 91.4 | 97.9 |
| DPS (sen) | 62.0 | 62.0 | 62.0 |
| Dividend Yield (%) | 6.4% | 6.4% | 6.4% |
| P/E Ratio (x) | 11.3 | 10.7 | 10.0 |
(Source: TA Investment Bank research report)
Valuation & Target Price
| Rating | BUY |
| Last Close Price | RM9.74 |
| Target Price (TP) | MYR 11.40 |
| Valuation Methodology | Implied PBV of c. 1.31x based on the Gordon Growth Model. |
Analyst’s Conclusion
- Overall Stance: TA Investment Bank maintains a “BUY” rating on Maybank, expressing confidence in its strategic focus on high-potential growth segments to drive non-interest income.
- Key Catalyst/Strength: Maybank’s push into Islamic wealth and Shariah-compliant offerings serves as a meaningful differentiator, complemented by a robust FX strategy under Global Markets.
- Major Headwind/Risk: Intense competition in wealth management and the ambitious nature of its mid-market share target pose challenges, alongside the inherent sensitivity of the FX business to macroeconomic volatility.
- What to Watch: Investors should monitor Maybank’s execution in expanding its Islamic wealth proposition, progress in dominating the mid-market segment (especially in key regions), and the resilience of its FX business amidst changing market sentiments.
Disclaimer: This article is a summary and interpretation of a research report published by TA Investment Bank on 2025-07-07. All information is for reference purposes only and does not constitute investment advice. Investors should conduct their own independent research and due diligence and assume all associated risks.
