Foreign Investors Flock to Malaysian Banks Amid Positive Earnings

Foreign investors record highest weekly net purchase in eight years, buying MYR 1.5 billion worth of Malaysian stocks in the past week. In its weekly fund flow report, MIDF Research noted that the financial services sector saw the highest net foreign inflow in, amounting to MYR 1.3 billion. The $Bursa Finance Services (0010I.BMS)$ has also recorded over a 20% increase year-to-date.

Among the Malaysian bank giants illustrated in the chart, $MAYBANK (1155.BMS)$ reported a revenue of MYR 7.34 billion, marking a modest 0.47% YoY increase, while its net profit rose by 8.17% YoY to MYR 2.52 billion. $PBBANK (1295.BMS)$'s revenue grew by 6.18% YoY to MYR 3.41 billion, with a net profit increase of 10.08% YoY, reaching MYR 1.78 billion, and an impressive ROE of 12.4%. $CIMB (1023.BMS)$ achieved a 5.04% YoY rise in revenue to MYR 5.60 billion, and its net profit climbed 10.60% YoY to MYR 1.96 billion, despite having the highest NPL ratio at 2.5%. $RHBBANK (1066.BMS)$ saw the highest revenue growth at 12.37% YoY, totaling MYR 2.11 billion, though its net profit decreased by 10.68% YoY to MYR 0.72 billion. Notably, RHB Bank offered the highest dividend yield at 6.54% and maintained the strongest CET 1 Ratio at 16.9%.

Read more: Malaysia Banks Lead the Market Amid the Upcoming Earnings Season