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Macquarie initiated coverage on Malayan Banking Bhd (MAY:MK) with an Outperform rating and a price target of MYR11.17 on Tuesday.
The research firm cited Maybank’s structural improvements in asset quality and emphasized that cost control would be crucial for enhancing return on equity (ROE) going forward.
Macquarie projects that with a modest cost-to-income ratio (CIR) of 44% by fiscal year 2028, Maybank could achieve an ROE of approximately 12.5%, implying an 8.7% forward yield.
The firm ranks Maybank as "a close third in our pecking order," noting that the bank’s operational improvements "have been a positive surprise."
Macquarie indicated it is awaiting details of Maybank’s new midterm plan, which could provide further insight into the bank’s strategic direction.
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