Alliance Bank (ABMB) forecasts strong loan growth and stable margins, projecting robust loan growth averaging 8% for the Fiscal Year 2025 Estimate (FY25E), driven by SME and personal financing segments.
Despite competitive pressures in mortgages, the bank anticipates stable net interest margins (NIMs) and resilient non-interest income (NOII), with higher credit costs already factored into forecasts, as cited by Maybank Investment Bank (Maybank) in their report today (August 15, Monday).
Maybank maintains a BUY rating on Alliance Bank.
Maybank underscores ABMB resilience and growth potential, reiterating its BUY recommendation with an unchanged target price (TP) of MYR4.35.
The bank's outlook remains optimistic on ABMB's earnings trajectory, supported by a strong dividend yield of 6% and the upcoming announcement of 1QFYE3/25 results on August 29th.
The house said ABMB demonstrates robust loan growth and maintains stable margins amidst competitive mortgage dynamics, positioning itself strategically in the banking sector.
Maybank's BUY rating reaffirms confidence in ABMB's ability to manage credit costs effectively while delivering consistent shareholder returns and operational stability.