Due to limited expansion of return on equity (roe), coupled with possible interest rate cuts next year, local banks may face pressure on net interest margin. Analysts believe that the prospects of bank stocks are mediocre, especially for the leading Maybank. $MAYBANK (1155.MY)$ Cautioning investors, suggesting reducing holdings!
The latest analysis report from Malaysian investment banks suggests that the banking industry may cool down next year, with a sector rating of only 'neutral'. Maybank, with a high valuation, is likely to be the first to feel the impact, with the target price plummeting from the original 10.80 ringgit to 8.85 ringgit; the rating has also been downgraded to 'shareholding'.
The analyst stated that the reason for slashing the target price of the bank was not only due to the pressure on the return on equity, but also because the stock price of the bank was at a relatively high level compared to its book value.
In addition, the bank's operating income, compared to 6.9% in the 2024 fiscal year, is expected to drop significantly to 3% in the 2025 fiscal year, mainly due to a slowdown in funding and market income.
Therefore, in view of the various downside risks, analysts have lowered the target price and rating of Ma Bank.
Investing in banks with high roe is the strategy.
Overall, in the banking sector, analysts believe that banks with high return on equity and high liquidity will be one of the key investment focuses given the current situation.
Analysts pointed out that by the 2025 fiscal year, the return on equity (ROE) had only increased from 9.4% to 9.7%, mainly due to the core net profit of banks, expected to decrease from this year's 7% to 6....

The market climbed its best on Monday, with equities paling in comparison to the explosive first session of last week. The S&P 500 climbed while individual decliners brought down the Dow.
Just past 4 pm ET the     $S&P 500 Index (.SPX.US)$ climbed 0.39% the         $Dow Jones Industrial Average (.DJI.US)$ fell 0.13%, and the     $Nasdaq Composite Index (.IXIC.US)$ climbed 0.60%.
$NVIDIA (NVDA.US)$ reports pulled the Dow lower,...

I started with moomoo and officially started investing a year ago. This week, I went from 0.5 million initial capital to 7 million. The moomoo community has many talented people, but the official notification a few days ago told me that I am already an important community user among the Australian Chinese. I have been following closely before, you can see my previous historical messages, always focusing on a few opportunities in the US stock market. $Tesla (TSLA.US)$ In a year, I spend several hours every day watching the stock market, diligence leads to wealth. I have no intention of stopping investing, investing is a long-term subject, and I will continue to express my opinions in the community. (Not investment advice, just casual communication. Adults should take responsibility for their own actions ☕️)
In a year, I spend several hours every day watching the stock market, diligence leads to wealth. I have no intention of stopping investing, investing is a long-term subject, and I will continue to express my opinions in the community. (Not investment advice, just casual communication. Adults should take responsibility for their own actions ☕️)

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