KUALA LUMPUR, April 17 ― Kenanga Research has maintained its 'outperform' rating for Malayan Banking Bhd (Maybank) due to its leading market share, strong brand equity and as it continues to present itself as a highly sustainable investment option.

In a note, the research house said Maybank’s conservative financial year 2024 (FY 2024) targets appear reasonable as it anticipates some sectorial risk to emerge, such as slower loans growth from delayed economic activities and higher inflation.

"The group stands to maintain its overlays for now, requiring certainty on diminished macro concerns to its loan book repayments.

"Though dividends could be purely in cash in the near term, yields of six per cent to seven per cent are still attractive for the name," it said.

Kenanga noted that the bank’s FY 2024 loans growth target of 6.0-7.0 per cent (FY 2023: 9.0 per cent) is premised on slower albeit sustainable demand in most fronts, with better support coming from recoveries in consumer spending and economic activity.

"Its global banking units seek to benefit from regional recoveries as well, predominantly in Indonesia’s high-growth status and rising corporate portfolios," it added.

Moving forward, the research firm expects Maybank to demonstrate operational resilience while sustaining its position as the leading bank in terms of market share, with its target price remaining at RM11 per share.

At 11.23am, Maybank’s share price fell three sen to RM9.55 from yesterday's closing of RM9.58, with 1.80 million shares traded. ― Bernama