KUALA LUMPUR: Malayan Banking Bhd
’s (Maybank) shares were up in early trade, following its newly-launched ROAR30 five-year strategy plan (2026-2030), targeting to deliver a stronger return on equity (ROE) of 13 per cent-14 per cent by 2030.
At 10.20 am, the counter rose by four sen to RM11.10, with 4.66 million shares transacted.
In a note today, MBSB Investment Bank Bhd (MBSB IB) said Maybank’s ROAR30 ROE target may be difficult to achieve, but still plausible.
"We opine the success of this operation is highly dependent on certain factors, such as how quickly Indonesia’s turnaround can take place and how well Maybank is able to manage its cost profile.
"We await the upcoming results briefing for further details on the bank’s capital optimisation plan -- though we are not overly optimistic on the prospect of special dividends or an increase in dividend payout ratio so early in the multi-year plan,” it said.
Therefore, MBSB IB said it will maintain its earnings forecasts and wait for better guidance on the year-on-year timeline for each target before making any changes.
Meanwhile, Hong Leong Investment Bank Bhd (HLIB) said the projected uplift of the ROE target to 13 per cent-14 per cent (from 11.5 per cent as of the nine months of 2025) is ambitious but mathematically structured around a capital-light transition.
Achieving this while maintaining a dividend payout ratio already above 70 per cent hinges on the bank’s ability to grow non‑interest income, which is less reliant on capital requirements, it said.
"As high-growth areas such as wealth management and Islamic legacy planning require minimal regulatory capital, Maybank can theoretically improve earnings while sustaining high shareholder payouts.
"This strategy positions the bank as both a growth engine and a premier yield play,” it said.
HLIB said with Maybank’s stable credit costs, current account savings account ratio targets above 41 per cent, and mid‑single‑digit income growth, its earnings forecasts for the bank remain unchanged.
"We maintain our ‘Buy’ call with a target price of RM12.70, supported by attractive yields of 5.8 per cent,” it added. - Bernama
