PETALING JAYA: Maybank Investment Bank (Maybank IB) Research is expecting a stable year for banks while projecting operating profit growth of 5.3% and net profit growth of 5.7% respectively.
“We forecast a cumulative operating profit growth of 5.3% for 2025 and 2026, compared with 7.1% in 2024. This is premised on domestic loan growth of 5.5%, stable net interest margins and an aggregate cost-to-income ratio of 44.7% in 2025 versus 44.9% in 2024.
“We project cumulative net profit growth of 5.7% and 5.5% in 2025 and 2026 respectively. We forecast stable return on equity at 10.6% and 10.6% in 2025 and 2026 against 10.5% in 2024,” the research house said.
The banking sector ended 2024 on a satisfactory note, with all banks under its coverage meeting expectations and AMMB Holdings Bhd
coming in marginally above.
Cumulative operating income rose 8% year-on-year in 2024, with decent gross loans expansion of 5.5%, stable margins and robust non-interest income growth of 16%, led by investment and forex gains.
“Our top three picks are Public Bank Bhd, AMMB and CIMB Group Holdings Bhd. Public Bank’s RM1.3bil management overlays should keep credit costs low, LPI Capital Bhd will enhance non-interest income and we think concerns over a share overhang are overblown.
“AMMB’s focus on proactive funding cost management and business banking operations should contribute to growth momentum, as it strives for higher dividend payouts,” the research house added.
