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Published: Friday December 7, 2012 MYT 8:50:00 AM

CIMB Research Neutral on banks, Maybank top pick

KUALA LUMPUR: CIMB Equities Research said at a glance, the third quarter FY012 banking sector results look impressive with net profit growth of 13.6% on-year, which beat its forecasts and consensus.

"But earnings quality was low as the earnings were partly lifted by unsustainably robust investment income and write-backs in credit costs," it said on Friday.

The research house said the bright spot in the 3Q12 results was the on-quarter improvement in the net interest margin.

"The key concerns were the slowdown in loan growth and the expected upturn in the credit cost cycle from a trough in the Q3, 2012. Maintain Neutral on Malaysian banks with Maybank as our top pick," it said.

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