KUALA LUMPUR: Maybank Investment Bank Bhd (Maybank IB) expects 2026 to be a more conducive operating year for the banking sector, with aggregate operating profit and net profit forecast to grow by 4.7 per cent and five per cent, respectively.
In a note, Maybank IB said domestic economic growth of 4.5 per cent in 2026 is expected to support industry loan growth of around five per cent.
Net interest margins (NIMs) are also expected to remain stable in the absence of further rate cuts and amid easing liquidity pressure.
The bank noted that asset quality remains impeccable, supporting benign credit costs, while management overlays provide an additional buffer.
"Dividend yields are decent, averaging about 5.5 per cent for the financial year 2025 (FY2025), and 5.8 per cent for FY2026.
"We project dividend yields of above five per cent for most banks this financial year, except for Alliance Bank Malaysia Bhd
(ABMB) and Hong Leong Bank Bhd, which are expected to come in at 4-plus per cent,” it said.
Maybank IB named CIMB Bank Bhd, AmBank Group and ABMB as its top three "buy" picks.
For CIMB, the bank expects an improved operating environment amid lower NIM pressure in Singapore and a stable economic outlook in Malaysia and Indonesia.
Meanwhile, it noted AMMB Holdings Bhd’s proactive funding cost management and business banking operations are expected to support growth momentum, as it targets higher dividend payouts of potentially up to 60 per cent compared with Maybank IB's forecasts of 50 per cent.
In view of firmer macroeconomic momentum, stable interest margins and benign credit costs amid resilient asset quality, Maybank IB has upgraded its rating on the banking sector to "positive” from "neutral”. - Bernama
