KUALA LUMPUR, March 18 — RHB Research Institute Sdn Bhd has maintained its “buy” call on Matrix Concepts Bhd with a higher target price (TP) of RM2.35 following a meeting with the company’s management on its joint venture project in…
KUALA LUMPUR: Malayan Banking Bhd (Maybank) registered its highest ever net profit of RM8.11 billion for the financial year ended Dec 31, 2018 (FY18) from RM7.52 billion a year ago, mainly underpinned by higher loan growth, lower overheads as well as lower provisioning.
Its FY18 revenue increased 3.8% to RM47.32 billion from RM45.58 billion previously.
Net profit for the fourth quarter, meanwhile, grew 9.1% to RM2.33 billion from RM2.13 billion in the same quarter a year ago, with revenue expanding 3.8% to RM12.23 billion from RM11.79 billion.
The bank has proposed to declare a final dividend of 32 sen per share for the quarter under review.
Together with the 25 sen interim dividend declared earlier, the full-year dividend payout of 57 sen per share amounts to RM6.3 billion or 77.3% of net profit.
The total dividend payout translates into a higher dividend yield of 6% versus 5.6% in 2017.
In 2018, Maybank achieved record net operating income of RM23.63 billion, up 1.7%, on the back of a 3.1% increase in fund-based income as a result of higher contributions from all business sectors and key home markets.
Group gross loans expanded at a faster pace of 4.8% in FY18, compared with 1.7% previously. The Malaysian operations saw loans expanding 4.8%, Singapore 4.5%, Indonesia 7.0% and 10.9% for other international markets.
Maybank highlighted that its net impairment losses for the year coming in 20.5% lower than the previous year, lifting operating profit by 9.3% to RM10.8 billion in 2018.
For the fourth quarter alone, it saw net impairment losses coming in 58.1% lower than in the preceding quarter.
The bank continued to maintain a healthy liquidity position with its liquidity coverage ratio of 132.4% and loan-to-deposit ratio of 92.7%.
Total capital ratio was 18.51% while its fully loaded common equity tier 1 ratio stood at 14.51%, both well above the regulatory requirements of 8.0% and 4.5% respectively.
Maybank group president and CEO Datuk Abdul Farid Alias anticipates external headwinds to continue to create uncertainties in the market, and expects the bank’s loan growth to grow in line with the market expansion of 5.1% this year.
Nevertheless, he said the competition for deposits could place pressure on the bank’s net interest margins (NIMs) this year.
“We compressed about three basis points (bps) in 2018, so we expect (NIM compression) around three to five bps (in 2019),” he said at a press conference today.
The bank’s NIM was marginally lower at 2.33% in FY18, from 2.36% in FY17.
Moving forward, Farid said, the bank remains cautious over the global operating environment given continued geopolitical concerns as well as volatility in commodity prices, although it expects greater stability in the domestic market arising from measures being put in place to ensure sustainable growth.
Asked whether the bank will be able to maintain last year’s revenue growth, Farid said it will depend on the business sentiment, noting that within the domestic market, the consumer market is still robust despite the external headwinds.
He said: “2018 was a very difficult year for the market. Last year, the challenge for us is more on the non-retail site, apart from SMEs. We hope that the business sentiment will turnaround this year.
“But I believe for that to happen, we need to understand what is the long-term economic policy is going to be going forward. So I’m quite hopeful with the setting up of the new Economic Action Council,” he added.
KUALA LUMPUR, Feb 26 — Malayan Banking Bhd’s net profit for the financial year ended Dec 31, 2018 (FY18) rose 7.9 per cent to RM8.11 billion from RM7.52 billion a year ago. Revenue increased to RM47.32 billion from RM45.58 billion previously. In…
For many people, financial planning is usually associated with insurance products or even unit trust funds. In reality however, it has a much broader scope. A comprehensive financial plan covers the following areas – investments, insurance, estate planning, cash flow management, taxation planning and others. In short, it involves the process of developing strategies to […]
PETALING JAYA: Malakoff Corp Bhd’s acquisition of Alam Flora is expected to improve its earnings by 4% in financial year ending Dec 31 (FY19) based on an earnings contribution of five months, according to AmInvestment Bank.
On a full-year basis, Alam Flora would increase Malakoff’s FY20 net profit by 10% and boost Malakoff’s fair value from 85 sen per share to about 94 sen a share, AmInvestment analyst Gan Huey Ling said in a note last Friday.
According to Gan, the research house will upgrade Malakoff’s FY19 earnings forecast if the RM944.6 million acquisition of 97.4% of Alam Flora from DRB-Hicom Bhd is completed by the third quarter of 2019 (Q3FY19).
Recently, Malakoff announced that the cut-off date for the fulfilment of the conditions for the acquisition has been extended to July 31.
“We have assumed Malakoff’s gross dividend per share to be 3.5 sen for FY18 and 4 sen for FY19. These translate into decent dividend yields of 4.2% for FY18 and 4.8% for FY19. Implied net dividend payouts are 93% for FY18 and 100% for FY19,” she added.
The research house maintained its “hold” recommendation on Malakoff with an unchanged discounted cash flow-based fair value of 85 sen per share. Its fair value of 85 sen per share implies an FY19 price earnings (PE) of 21.2 times and FY20 PE of 20.7 times.
Going forward, Malakoff has scheduled 100 days of maintenance shutdowns for the Tanjung Bin Energy (TBE) power plant in FY19.
As these are scheduled outages, Gan said the group will still receive capacity payments from Tenaga Nasional Bhd in FY19.
“We gather that there has not been any unplanned outage at the power plants in 4QFY18,” she said.
However, she said TBE power plant’s earnings may still be slightly affected as the rectification works for the voltage regulator, which started in early September, was only completed at the end of October 2018.
Recall that there were unplanned outages at the TBE power plant, GB3 power plant and KEV (Kapar Energy Ventures) power plant in Q3FY18.
Gan also noted that Malakoff is negotiating with General Electric, which is the main contractor, on the compensation for the unplanned outages at the TBE power plant.
She said the compensation would not be able to make up for the loss in capacity payments. However, Malakoff is hoping to extend the warranty period for the equipment and parts and/or receive compensation to cover the cost of repair or rectification works.
Previously, Malakoff’s target was to achieve the stipulated power purchase agreement threshold unplanned outage level of 6% by February 2019.
However, due to the numerous unplanned outages in Q3FY18, the timeline has been shifted to September 2019.
KUCHING: Malakoff Corporation Bhd’s (Malakoff) acquisition of Alam Flora Sdn Bhd (Alam Flora) is said to improve the former’s net profits in financial year 2019 forecasts (FY19F) by four per cent, based on an earnings contribution of five months. The team behind AmInvestment Bank Bhd (AmInvestment Bank) said that on a full year basis, the […]
KUCHING: Syarikat Takaful Malaysia Keluarga Bhd (STMB) performed above expectations for the financial year 2018 (FY18) despite the challenging market conditions seen last year, analysts observed. MIDF Amanah Investment Bank Bhd’s research arm (MIDF Research) in a recent report, pointed out that STMB reported strong growth of 43 per cent year-on-year (y-o-y) for its first […]