Gold prices steady ahead of Fed decision; weekly weakness noted
Macquarie initiated coverage on Hong Leong Bank Bhd (KLSE:HLBK) Tuesday with an outperform rating and a price target of MYR24.11.
The research firm cited the bank’s strong asset quality and attractive upside potential as key factors supporting the positive outlook. Macquarie noted that while the bank offers upside, its dividends remain too low for it to rank higher in the firm’s overall banking sector preferences.
The 12.5% fiscal year 2028 target return on equity (ROE) appears stretched according to Macquarie’s analysis. The firm suggested Hong Leong Bank could become a long-term ROE leader by improving asset yields through a reduction in its residential mortgage exposure.
Macquarie expressed confidence in the bank’s BOCD associate, highlighting the consistent cash dividends received from this relationship as a positive factor in its assessment.
The research firm’s initiation comes as Hong Leong Bank continues to position itself in Malaysia’s competitive banking landscape, where asset quality and yield potential remain critical differentiators for investors.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.