Malayan Banking Bhd shares edged up 0.56% to RM10.68 as at 11.25am, gaining six sen from its previous close of RM10.62, as investors weighed the bank’s latest earnings against a mixed operating outlook.
The counter opened at RM10.66 and traded between RM10.66 and RM10.72, with 55,263 hundred shares changing hands.
The movement came after Maybank reported a 1% year-on-year decline in 1H26 net profit to RM5.17 billion, with Kenanga Research maintaining its OUTPERFORM call and RM12.30 target price after deeming the results broadly in line with expectations.
Kenanga said the earnings were supported by stronger core fee income and lower impairment charges, although weaker investment income from the global markets business dragged pre-provision operating profit lower.
The research house also highlighted Maybank’s 2.7% loan growth and 7.6% increase in CASA deposits, which lifted the CASA ratio to 41.5%. NIM improved 10 basis points year-on-year to 2.12% in the first half, although it eased four basis points quarter-on-quarter to 2.10% in 2Q26.
Maybank declared a 31 sen interim dividend, including five sen eligible for dividend reinvestment, representing a 72.5% payout ratio.
Kenanga said asset quality remained manageable, with loan loss coverage at 103.1%, while management retained its FY26 loan growth target of 4% to 5% and ROE target above 11.8%.
As at the latest price, Maybank was still RM1.62 below Kenanga’s target, implying potential upside of about 15.2%.
