Denison Mines announces $250 million convertible notes offering
Investing.com - UBS has initiated coverage on Alliance Bank (KLSE:ABMB) with a Neutral rating and a price target of MYR4.65, according to a research note released Sunday.
The Malaysian bank, which ranks as the 8th largest domestic bank in Malaysia by assets, specializes in the SME segment that comprises approximately 40% of its loan book—the highest proportion among its peers.
UBS highlighted potential challenges to Alliance Bank’s SME strategy, citing intensifying competition and the bank’s relatively small market share of 5-6%, which the firm believes indicates a lack of strong competitive edge.
The research firm noted that Alliance Bank’s return on equity (ROE) has consistently remained within the 9-10% range over recent years and forecasts this trend will continue, with projected ROE of approximately 9.5% in FY26-27E, down from 10% in FY25.
This expected ROE decline is attributed to a larger equity base following a MYR600 million rights issue planned for July 2025, combined with lower net interest income relative to assets.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.