Affin Bank Berhad
(5185 | ABANK MK) Main | Financial Services
★★★ 3 Stars
FTSE4Good
2QFY25 Results Review
A Stronger Second Half
Maintain NEUTRAL
Revised Target Price RM2.48 (from RM2.46)
RETURN STATISTICS
| Price @ 15 August 2025 (RM) | 2.40 |
|---|---|
| Expected share price return (%) | +3.4 |
| Expected dividend yield (%) | +3.1 |
| Expected total return (%) | +6.5 |
SHARE PRICE CHART
(Chart placeholder: No image provided as per instructions)
| Price performance (%) | Absolute | Relative |
|---|---|---|
| 1 month | -9.4 | -12.3 |
| 3 months | -5.5 | -10.2 |
| 12 months | -18.5 | -16.5 |
INVESTMENT STATISTICS
| FYE Dec | FY25F | FY26F | FY27F |
|---|---|---|---|
| Core NP (RM m) | 599 | 639 | 699 |
| CNP growth (%) | 12 | 12 | 12 |
| Div yield (%) | 3.0 | 3.1 | 3.4 |
| Gross DPS (sen) | 7.2 | 7.5 | 8.1 |
| P/BV (x) | 0.5 | 0.5 | 0.5 |
| BVPS (RM) | 4.8 | 5.1 | 5.3 |
| ROE (%) | 5.0 | 5.1 | 5.4 |
| % Street CNP (%) | 105 | 96 | 90 |
KEY STATISTICS
| FBM KLCI | 1,576.34 |
| Issue shares (m) | 2,533.8 |
| Estimated free float (%) | 22.9 |
| Market Capitalisation (RM’m) | 6,081.2 |
| 52-wk price range | RM2.20-RM3.24 |
| 3-mth average daily volume (m) | 1.5 |
| 3-mth average daily value (RM’m) | 3.7 |
| Top Shareholders (%) | |
| Sg Assetfin Holdings Sdn Bhd | 26.4 |
| Bank of East Asia | 23.9 |
| LTAT | 22.0 |
To Conclude
To Conclude Weaker set of earnings, as forecasted. Management’s tone: Cautiously optimistic Expect: A stronger 2HFY25, buoyed by August’s influx of Sarawak payroll balances.
Our Verdict
Our Verdict We feel that current valuations are stretched, given AFFIN’s current low profitability level, also there is a chance of bonus issuance instead of dividends.
Valuations
Valuations Although AFFIN’s current P/BV of 0.50x is trading below the 10-year P/BV mean of 0.53x, we feel it is currently fully valued given AFFIN’s low ROE – especially since AFFIN’s historical share price has been inflated by positive Sarawak-related sentiment for a long time.
The company is currently trading at a forward FY26F P/BV of 0.47x with a 3.1% dividend yield.
Yays
- CASA inflows to drive NIM outlook.
- High fee income to drive topline.
- Despite the incoming loan growth target revision, loan growth is still very high.
Nays
- Low dividend yields.
- Expect negative revisions to FY25 target next quarter.
- Group may always need capital to match high loan growth.
Okays
- Cost-cutting initiatives may already be bearing fruit.
- Asset quality situation, though looking good, can always switch.
Results in a nutshell:
► 6MFY25’s Core NP of RM268m was Within/Within our/street forecasts: 45%/47% of full-year forecasts. Despite coming in on the weaker end, we are forecasting a stronger 2HFY25 – largely buoyed by the expected influx of Sarawak payroll balances. Our forecasts already factor in AFFIN not being able to meet several of its current FY25 profitability targets.
► No dividend announcement.
► 6MFY25’s Core net profit (NP) of RM268m up by 17%yoy. This was driven by increases in NII and NOII, which offset higher OPEX, provision, and tax expenses.
► 2QFY25’s Core NP of RM143m up by 16%qoq. This was due to improved topline and tax performance, which offset higher OPEX and provision expenses.
Have a look at:
- ► As usual, expect negative revisions to FY25 targets – these will be announced by 3QFY25. We are expecting revisions to ROE, NIM, CIR, and loan growth targets.
- ► Management hints heavily at possible DRP or bonus issuance in FY25. Despite being happy at the present CET1 level, management wants more capital to fund its high level of growth and possible M&A activity.
- ► NIM was dragged by a flight to FDs. CASA saw a substantial drop, being replaced by FDs due to recent volatile events. Despite lowering FD rates, AFFIN still saw huge demand, which weighed down on COF. AFFIN intends to release the excess liquidity in the latter months – even if loan demand does not match it. The Group also debuted a USD300m senior unsecured note issuance as part of its NIM optimisation strategy. Overall, a NIM compression of 1.5bps is expected this year due to the OPR cut.
- ► Still optimistic on the Sarawak government payroll CASA influx, slated to occur in August. Some Sarawakian non-government corporations and individuals have already come in (as seen in the last quarter) – there is a debit card shortage in Sarawak. Promising sign: New customer account openings peaked in June – implying more avenues for CASA growth.
- ► Miscellaneous OPEX/tax expense related matters:
- Tax rate was lower this quarter – but expect to see elevated charges soon. This lowered rate was due to movements in provision fulfilment settings. In the remainder of FY25, expect the normalised tax rate to be at 25-26% (which is higher than the usual 24%).
- AFFIN is coming to the tail-end of its heavy IT infrastructure spend. Currently, AFFIN’s capex spend is to future-proof the bank. Hopefully this brings down the CIR in subsequent years.
- Of FY25’s new branch target of 16, only 1 or 2 branches remain unfinished. Implying lesser spending on this front in subsequent quarters.
- ► Loan growth has been lacklustre so far – despite an impressive pipeline, expect FY25 loan growth targets to be cut. This was dragged by large repayments in the corporate loan segment. Management’s impressive pipeline stands at RM13b (most of these are non-Sarawak related), boding well for the corporate loan growth outlook. On a more optimistic note, enterprise banking seems to be picking up (especially from the Sarawak side). The Group does note stronger demand in bigger SMEs, but tightening demand amid smaller players.
- ► We could see significant improvement in asset quality by year-end. The Group seems optimistic about the resolutions of several larger delinquencies, which implies larger recoveries and write-offs. Also, the more concerning Stage 2 loans in enterprise and corporate banking segments seem to be trending downwards, which is a positive sign (do note some increase in the community banking segment’s Stage 2 loans).
Forecasts unchanged. We make no changes to our earnings forecasts.
Key downside risks. (1) Severe asset quality deterioration, (2) Steep NIM compression, (3) Weaker-than-expected NOII performance.
Maintain NEUTRAL call: Revised GGM-TP of RM 2.48 (from RM2.46). The TP is based on a revised FY26F P/BV of 0.49x (formerly 0.51x, rolled on from FY25F), to reflect altered earnings prospects and ROE-based valuations.
(GGM assumptions: FY26F ROE of 5.1%, LTG of 3.0% & COE of 7.4%)
FIG 1: Quarterly results
| FYE Dec (RM m) | 2Q FY25 | 1Q FY25 | 2Q FY24 | Yoy (%) | Qoq (%) | 1H FY25 | 1H FY24 | Yoy (%) |
|---|---|---|---|---|---|---|---|---|
| Net interest inc. | 213 | 206 | 192 | 11 | 3 | 419 | 386 | 8 |
| Islamic banking inc. | 219 | 198 | 161 | 36 | 11 | 417 | 329 | 27 |
| Non-interest inc. | 185 | 140 | 142 | 30 | 32 | 325 | 284 | 14 |
| Net income | 616 | 544 | 495 | 25 | 13 | 1,160 | 999 | 16 |
| OPEX | (420) | (379) | (368) | 14 | 11 | (799) | (747) | 7 |
| PPOP | 196 | 165 | 127 | 54 | 19 | 361 | 253 | 43 |
| Loan provisions | (48) | (7) | (22) | 112 | 625 | (54) | (7) | 688 |
| Other provisions | 7 | (2) | 35 | -80 | -417 | 5 | 38 | -88 |
| JV & Associates | 24 | 22 | 11 | n.m. | n.m. | 46 | 12 | n.m. |
| PBT | 180 | 178 | 151 | 19 | 1 | 358 | 296 | 21 |
| Tax | (36) | (54) | (32) | 13 | -33 | (90) | (67) | 35 |
| NCI | n.m. | n.m. | n.m. | |||||
| Reported NP | 143 | 124 | 119 | 21 | 16 | 268 | 229 | 17 |
| Core NP | 143 | 124 | 119 | 21 | 16 | 268 | 229 | 17 |
| Total NII | 432 | 404 | 353 | 22 | 7 | 835 | 715 | 17 |
| Total NOII | 185 | 140 | 142 | 30 | 32 | 325 | 284 | 14 |
| Gross DPS (sen) | n.m. | n.m. | n.m. | |||||
| Core EPS (sen) | 5.6 | 5.1 | 4.7 | 18 | 10 | 10.5 | 9.2 | 14 |
| Gross loans | 74,066 | 72,898 | 69,016 | 7.3 | 1.6 | |||
| Gross impaired loans | 1,359 | 1,344 | 1,306 | 4.1 | 1.1 | |||
| Customer deposits | 78,202 | 75,467 | 71,226 | 9.8 | 3.6 | |||
| CASA | 22,060 | 24,308 | 18,439 | 19.6 | -9.2 |
| Ratios (%) | 2Q FY25 | 1Q FY25 | 2Q FY24 | Yoy (ppts) | Qoq (ppts) | 1H FY25 | 1H FY24 | Yoy (ppts) |
|---|---|---|---|---|---|---|---|---|
| ROE (Ann.) | 4.8 | 4.2 | 4.2 | 0.6 | 0.6 | 4.5 | 4.0 | 0.4 |
| NIM (Reported) | 1.48 | 1.47 | 1.40 | 0.08 | 0.01 | 1.49 | 1.42 | 0.07 |
| NOII/Net income | 30.0 | 25.8 | 28.6 | 1.4 | 4.2 | 28.0 | 28.4 | -0.4 |
| Cost/Income | 68.2 | 69.7 | 74.3 | -6.2 | -1.5 | 68.9 | 74.7 | -5.8 |
| NCC (Ann.) (bps) | 27 | 4 | 14 | 13 | 23 | 15 | 2 | 13 |
| GIL ratio | 1.83 | 1.84 | 1.89 | -0.06 | -0.01 | |||
| Loan loss coverage | 79 | 80 | 97 | -18 | -1 | |||
| CASA ratio | 28.2 | 32.2 | 25.9 | 2.3 | -4.0 | |||
| L/D ratio | 93.3 | 95.2 | 95.1 | -1.8 | -1.8 | |||
| CET-1 | 13.4 | 13.5 | 12.8 | 0.5 | -0.2 |
Source: Company, MBSBR
Source: Company, MBSBR
INCOME STATEMENT (QUARTERLY & CUMULATIVE)
2QFY25 / 6MFY25 results
Earnings: Within/Within our/street forecasts
45%/47% of full-year estimates
Dividend: NO
ROE (%)
t-5 t-4 t-3 t-2 t-1 t t-1 t
Core Net Profit (RM b)
110 119 146 135 124 143 229 268
t-5 t-4 t-3 t-2 t-1 t t-1 t
179 8 23 16 17
t-5 t-4 t-3 t-2 t-1 t t-1 t
-7 -8 -13
Pre-Provisioning Operating Profit (RM b)
126 127 157 165 196 253 361
92
t-5 t-4 t-3 t-2 t-1 t t-1 t
46 1 23 19 5
79
t-5 t-4 t-3 t-2 t-1 t t-1 t
-41 -28
OPEX – (RM b)
379 368 456 465 379 420 747 799
t-5 t-4 t-3 t-2 t-1 t t-1 t
23 31 26 10
t-5 t-4 t-3 t-2 t-1 t t-1 t
-3 -7 -18
-27
Topline – (RM b)
0.50 0.49 0.61 0.56 0.54 0.62 1.00 1.16
t-5 t-4 t-3 t-2 t-1 t t-1 t
4 24 13 16
t-5 t-4 t-3 t-2 t-1 t t-1 t
-2 -9 -2
Cost/Income ratio (%)
69.7 68.2 74.7 68.9
t-5 t-4 t-3 t-2 t-1 t t-1 t
% NOII as topline (%)
28.3 28.6 30.0
24.9 25.8 28.4 28.0
t-5 t-4 t-3 t-2 t-1 t t-1 t
Net interest income (RM b)
t-5 t-4 t-3 t-2 t-1 t t-1 t
Non-interest income (RM b)
t-5 t-4 t-3 t-2 t-1 t t-1 t
Source: Company, MBSBR
BALANCE SHEET
NIM (%)
1.40 1.40 1.42
1.31
t-5 t-4 t-3 t-2 t-1 t t-1 t
Non-fee NOII (RM b)
126 118
61 78 81
60
t-5 t-4 t-3 t-2 t-1 t t-1 t
Fee income growth – qoq (Qtr) & yoy (Cum) (%)
16 6 0
t-5 t-4 t-3 t-2 t-1 t t-1 t
-21 -25 -18
% Non-fee income as NOII (%)
43 55 43 58 49
t-5 t-4 t-3 t-2 t-1 t t-1 t
BALANCE SHEET
Loan growth – qoq, yoy, FYTD (%)
7.3
3.5 2.8
t-5 t-4 t-3 t-2 t-1 t Yoy-1 Yoy -1 FYTD
CET 1 ratio (%)
13.3 13.2
12.8
t-5 t-4 t-3 t-2 t-1 t
Deposit growth – qoq, yoy, FYTD (%)
6.0
0.6
t-5 t-4 t-3 t-2 t-1 t Yoy-1 Yoy -1 FYTD
-0.7 -0.3 -0.4
Loan/Deposit ratio (%)
95.1
93.0 93.8 93.3
t-5 t-4 t-3 t-2 t-1 t
CASA growth – qoq, yoy, FYTD (%)
3.3 7.7 12.7 8.6 11.1
t-5 t-4 t-3 t-2 t-1 t Yoy-1 Yoy -1 FYTD
-5.6 -9.2 -2.5 -1.4
CASA ratio (%)
24.9 25.9 26.9 28.2
t-5 t-4 t-3 t-2 t-1 t
GIL ratio (%)
1.89 1.84 1.83
1.74
t-5 t-4 t-3 t-2 t-1 t
Loan loss coverage (%)
82 80 79
t-5 t-4 t-3 t-2 t-1 t
Ann. net credit cost (bps)
14 4
-10 -12 -30
t-5 t-4 t-3 t-2 t-1 t
FIG 5: Retrospective performance (Income Statement)
Notes (Cum = Cumulative, Qtr = Quarterly)
This section provides context for the performance metrics below.
Qtrly Core NP
Metric: RM mil
Value now: 143
Surprise? Qoq/Yoy: As expected
| 24% of FY CNP | |
| Qoq | 16% |
| Yoy | 21% |
Qtrly ROE
Metric: Qtr value
Value now: 4.8%
Surprise? Qoq/Yoy: As expected
| t-1 | 4.2% |
| t-4 | 4.2% |
Cum Core NP
Metric: RM mil
Value now: 268
Surprise? Qoq/Yoy: Within our forecast
| 45% of FY CNP | |
| Within consensus | 47% of FY CNP |
| Yoy | 17% |
Cum ROE
Metric: Cum value
Value now: 4.5%
Surprise? Qoq/Yoy: As expected
| t-1 | 4.0% |
NII
Metric: As expected
| Qtr (Qoq) | 7% |
| Qtr (Yoy) | 22% |
| Cum (Yoy) | 17% |
NIM
Metric: As expected
| Qtr value | 1.48 |
| Cum value | 1.49 |
| Qtr (Qoq) | +1bps |
| Qtr (Yoy) | +8bps |
| Cum (Yoy) | +7bps |
NOII
Metric: As expected
| Qtr (Qoq) | 32% |
| Qtr (Yoy) | 30% |
| Cum (Yoy) | 14% |
Qtr % NII / % NOII
Metric: As expected
| % NII | 70% |
| % NOII | 30% |
Cum % NII / % NOII
Metric: As expected
| % NII | 72% |
| % NOII | 28% |
OPEX
Metric: As expected
| Qtr (Qoq) | 11% |
| Qtr (Yoy) | 14% |
| Cum (Yoy) | 7% |
Cost/Inc.
Metric: As expected
| Qtr value | 68.2% |
| Cum value | 68.9% |
| Qtr (Qoq) | -1.5% |
| Qtr (Yoy) | -6.2% |
| Cum (Yoy) | -5.8% |
Source: Company, MBSBR
FIG 6: Retrospective performance (Balance Sheet, Dividends, and anything extra)
Notes (Cum = Cumulative, Qtr = Quarterly)
This section provides context for the performance metrics below.
Loans
Surprise? Qoq/Yoy: -ve surprise
| Qoq | 1.6% |
| Yoy | 7.3% |
| YTD (FY) | 2.8% |
Depo. grwth
Surprise? Qoq/Yoy: As expected
| Qoq | 3.6% |
| Yoy | 9.8% |
| YTD (FY) | 6.0% |
CASA grwth
Surprise? Qoq/Yoy: As expected
| Qoq | -9.2% |
| Yoy | 19.6% |
| YTD (FY) | -1.4% |
CASA ratio
Surprise? Qoq/Yoy: -ve surprise
Value now: 28.2%
| Qoq | -4.0% |
| Yoy | +2.3% |
L/D ratio
Surprise? Qoq/Yoy: As expected
Value now: 93.3%
| Qoq | -1.8% |
| Yoy | -1.8% |
GIL ratio
Surprise? Qoq/Yoy: As expected
Value now: 1.83%
| Qoq | -1bps |
| Yoy | -6bps |
LLC ratio
Surprise? Qoq/Yoy: As expected
Value now: 79%
| Qoq | -1% |
| Yoy | -18% |
Qtrly Net CC
Surprise? Qoq/Yoy: As expected
Value now: 27bps
Decent provision
| t-1 | 4bps |
| t-4 | 14bps |
Cum Net CC
Surprise? Qoq/Yoy: As expected
Value now: 15bps
Decent provision
| t-4 | 2bps |
CET 1
Surprise? Qoq/Yoy: Healthy level
As expected
Value now: 13.4%
| Qoq | -0.2% |
Div payout
Surprise? Qoq/Yoy: No divvy
As expected
Payout: –
Others:
Source: Company, MBSBR
FIG 7: Targets, Achievements, and Outlook
| Targets | FY25 | 1H FY25 | Notes (Red: New guidance, Strikethrough: Guidance is no longer pertinent) |
|---|---|---|---|
| ROE | 6 PBT: RM1.1b |
4.5 PBT: RM358m |
Likely to be revised by 3QFY25. |
| CIR | 65 | 68.9 | Likely to be revised by 3QFY25. |
| NIM | 1.55 (+21bps FY24: 1.34) |
1.49 | Likely to be revised by 3QFY25. |
| NOII | 14% (yoy) | ||
| Loans | 12 | 2.8 (YTD) | Likely to be revised by 3QFY25. |
| Deposits | 6.0 (YTD) | ||
| % CASA | 31 | 28.2 | |
| Loan/Depo | 93.3 | ||
| GIL ratio | 1.70 | 1.83 | Management believes there will be large-scale write-offs and recoveries by year end, which will help reduce the current GIL ratio. |
| NCC (bps) | 12 (GCC) | 15 | |
| LLC | 90-100 | 79 | Current overlays: RM250m (No change from last quarter). |
| CET 1 | 13.4 | ||
| Div payout | – | Management is guiding for DRP or bonus issuance this year. |
Source: Company, MBSBR
FINANCIAL SUMMARY
INCOME STATEMENT
| FYE Dec (RM m) | FY23 | FY24 | FY25F | FY26F | FY27F |
|---|---|---|---|---|---|
| Net interest income | 783 | 826 | 989 | 1,066 | 1,166 |
| Islamic banking inc. | 596 | 691 | 659 | 711 | 778 |
| Other operating inc. | 607 | 652 | 907 | 958 | 1,048 |
| Net income | 1,986 | 2,170 | 2,555 | 2,735 | 2,991 |
| OPEX | (1,421) | (1,668) | (1,712) | (1,833) | (2,004) |
| PPOP | 565 | 502 | 843 | 903 | 987 |
| Loan allowances | (50) | 73 | (99) | (111) | (125) |
| Other allowances | (28) | 79 | (26) | (24) | (24) |
| JV & Associates | 36 | 55 | 59 | 63 | 69 |
| PBT | 523 | 708 | 777 | 830 | 907 |
| Tax & zakat | (121) | (198) | (179) | (191) | (209) |
| Discontinued ops | – | – | – | – | – |
| NCI | – | – | – | – | – |
| Reported NP | 402 | 510 | 599 | 639 | 699 |
| Core NP | 402 | 510 | 599 | 639 | 699 |
| Total NII | 1,379 | 1,518 | 1,648 | 1,777 | 1,944 |
| Total NOII | 607 | 652 | 907 | 958 | 1,048 |
FINANCIAL RATIOS
| FYE Dec (RM m) | FY23 | FY24 | FY25F | FY26F | FY27F |
|---|---|---|---|---|---|
| Interest (%) | |||||
| NIM | 1.50 | 1.44 | 1.52 | 1.53 | 1.53 |
| Return on IEAS | 2.89 | 2.94 | 2.05 | 1.98 | 1.89 |
| Cost of funds | 2.21 | 2.29 | 1.21 | 1.10 | 1.00 |
| Net interest spread | 0.68 | 0.65 | 0.84 | 0.88 | 0.89 |
| Profitability (%) | |||||
| ROE | 3.7 | 4.5 | 5.0 | 5.1 | 5.4 |
| ROA | 0.4 | 0.5 | 0.5 | 0.5 | 0.5 |
| NOII/Net income | 30.6 | 30.1 | 35.5 | 35.0 | 35.0 |
| Effective tax rate | 22.2 | 27.0 | 22.2 | 22.2 | 22.2 |
| Cost/Income | 71.6 | 76.9 | 67.0 | 67.0 | 67.0 |
| Liquidity (%) | |||||
| Loan/Deposit | 92.1 | 96.1 | 95.8 | 95.7 | 95.6 |
| CASA ratio | 26.7 | 30.4 | 26.0 | 27.0 | 27.0 |
| Asset Quality (%) | |||||
| GIL ratio | 1.90 | 1.94 | 1.96 | 1.96 | 1.96 |
| LLC ratio | 114 | 82 | 100 | 100 | 100 |
| LLC (w. reserves) | 140 | 116 | 128 | 125 | 122 |
| Net CC (bps) | 8 | -10 | 13 | 13 | 13 |
| Capital (%) | |||||
| CET 1 | 13.8 | 13.2 | 13.2 | 13.2 | 13.2 |
| Tier 1 capital | 15.3 | 14.6 | 14.6 | 14.6 | 14.6 |
| Total capital | 18.0 | 17.1 | 16.9 | 16.9 | 16.9 |
BALANCE SHEET
| FYE Dec (RM m) | FY23 | FY24 | FY25F | FY26F | FY27F |
|---|---|---|---|---|---|
| Cash & ST funds | 6,483 | 3,155 | 6,323 | 6,346 | 6,370 |
| Investment securities | 27,239 | 31,153 | 26,183 | 25,696 | 27,844 |
| Net loans | 65,225 | 70,892 | 79,108 | 88,602 | 99,234 |
| Other IEAs | – | – | – | – | – |
| Non-IEAs | 6,300 | 6,642 | 10,076 | 12,108 | 11,660 |
| Total assets | 105,248 | 111,842 | 121,690 | 132,751 | 145,108 |
| Customer deposits | 70,834 | 73,744 | 82,593 | 92,586 | 103,789 |
| Other IBLs | 21,289 | 23,869 | 24,299 | 24,746 | 25,210 |
| Non-IBLs | 2,016 | 2,629 | 2,668 | 2,710 | 2,754 |
| Total liabilities | 94,139 | 100,241 | 109,560 | 120,042 | 131,753 |
| Share capital | 5,371 | 5,489 | 5,489 | 5,489 | 5,489 |
| Reserves | 5,738 | 6,113 | 6,641 | 7,220 | 7,866 |
| Shareholders’ funds | 11,109 | 11,601 | 12,130 | 12,709 | 13,355 |
| NCI | – | – | – | – | – |
| Total equity | 11,109 | 11,601 | 12,130 | 12,709 | 13,355 |
| Total L&E | 105,248 | 111,842 | 121,690 | 132,751 | 145,108 |
| Total IEAs | 98,947 | 105,200 | 111,614 | 120,643 | 133,448 |
| Total IBLs | 92,123 | 97,612 | 106,892 | 117,332 | 128,999 |
| Gross loans | 66,663 | 72,045 | 80,690 | 90,373 | 101,218 |
| CASA | 18,914 | 22,384 | 21,474 | 24,998 | 28,023 |
Growth (%)
| FY23 | FY24 | FY25F | FY26F | FY27F | |
|---|---|---|---|---|---|
| Total NII | -19.4 | 10.1 | 8.6 | 7.8 | 9.4 |
| Total NOII | 76.6 | 7.4 | 39.1 | 5.7 | 9.3 |
| Net income | -3.4 | 9.3 | 17.7 | 7.1 | 9.4 |
| OPEX | 7.9 | 17.4 | 2.6 | 7.1 | 9.4 |
| Core NP | 415.4 | 26.7 | 17.4 | 6.8 | 9.2 |
| Gross loans | 12.3 | 8.1 | 12.0 | 12.0 | 12.0 |
| Customer deposits | 9.0 | 4.1 | 12.0 | 12.1 | 12.1 |
| CASA | 24.0 | 18.3 | -4.1 | 16.4 | 12.1 |
Valuation metrics
| FY23 | FY24 | FY25F | FY26F | FY27F | |
|---|---|---|---|---|---|
| Core EPS (sen) | 16.0 | 20.3 | 23.8 | 25.5 | 27.8 |
| Gross DPS (sen) | 5.8 | – | 7.2 | 7.5 | 8.1 |
| Div payout (%) | 33 | – | 30 | 30 | 30 |
| BVPS (RM) | 4.4 | 4.6 | 4.8 | 5.1 | 5.3 |
| Core P/E (x) | 15.0 | 11.8 | 10.1 | 9.4 | 8.6 |
| Div yield (%) | 2.4 | 0.0 | 3.0 | 3.1 | 3.4 |
| P/BV (x) | 0.5 | 0.5 | 0.5 | 0.5 | 0.5 |
Source: Company, MBSBR
MBSB RESEARCH (formerly known as MIDF RESEARCH) is part of MBSB Investment Bank Berhad (formerly known as MIDF Amanah Investment Bank Berhad) 197501002077 (24878-X).
(Bank Pelaburan) (A Participating Organisation of Bursa Malaysia Securities Berhad)
DISCLOSURES AND DISCLAIMER
This report has been prepared by MBSB Investment Bank Berhad (formerly known as MIDF AMANAH INVESTMENT BANK BERHAD) 197501002077 (24878-X).
It is for distribution only under such circumstances as may be permitted by applicable law. Readers should be fully aware that this report is for information purposes only. The opinions contained in this report are based on information obtained or derived from sources that we believe are reliable. MBSB INVESTMENT BANK BERHAD (formerly known as MIDF AMANAH INVESTMENT BANK BERHAD) makes no representation or warranty, expressed or implied, as to the accuracy, completeness or reliability of the information contained therein and it should not be relied upon as such. This report is not, and should not be construed as, an offer to buy or sell any securities or other financial instruments. The analysis contained herein is based on numerous assumptions. Different assumptions could result in materially different results. All opinions and estimates are subject to change without notice. The research analysts will initiate, update and cease coverage solely at the discretion of MBSB INVESTMENT BANK BERHAD (formerly known as MIDF AMANAH INVESTMENT BANK BERHAD). The directors, employees and representatives of MBSB INVESTMENT BANK BERHAD (formerly known as MIDF AMANAH INVESTMENT BANK BERHAD) may have an interest in any of the securities mentioned and may benefit from the information herein. Members of the MBSB Group and their affiliates may provide services to any company and affiliates of such companies whose securities are mentioned herein This document may not be reproduced, distributed or published in any form or for any purpose.
MBSB INVESTMENT BANK (formerly known MIDF INVESTMENT BANK): GUIDE TO RECOMMENDATIONS
STOCK RECOMMENDATIONS
- Total return is expected to be >10% over the next 12 months.
- The stock price is expected to rise by >10% within 3 months after a Trading Buy rating has been assigned due to positive news flow.
- Total return is expected to be between -10% and +10% over the next 12 months.
- Total return is expected to be <-10% over the next 12 months.
- The stock price is expected to fall by >10% within 3 months after a Trading Sell rating has been assigned due to negative news flow.
SECTOR RECOMMENDATIONS
- The sector is expected to outperform the overall market over the next 12 months.
- The sector is to perform in line with the overall market over the next 12 months.
- The sector is expected to underperform the overall market over the next 12 months.
ESG RECOMMENDATIONS* – source Bursa Malaysia and FTSE Russell
- ☆☆☆☆ Top 25% by ESG Ratings amongst PLCs in FBM EMAS that have been assessed by FTSE Russell
- ☆☆☆ Top 26-50% by ESG Ratings amongst PLCs in FBM EMAS that have been assessed by FTSE Russell
- ☆☆ Top 51%- 75% by ESG Ratings amongst PLCs in FBM EMAS that have been assessed by FTSE Russell
- ☆ Bottom 25% by ESG Ratings amongst PLCs in FBM EMAS that have been assessed by FTSE Russell
* ESG Ratings of PLCs in FBM EMAS that have been assessed by FTSE Russell in accordance with FTSE Russell ESG Ratings Methodology
