KUALA LUMPUR: Hong Leong Investment Bank Research (HLIB Research) is maintaining its Buy call on RHB CAPITAL BHD [] and raised the price target to RM9.49 (from RM9.36).
The research house said on Wednesday, Feb 23 RHB Cap's FY10 results in line with HLIB and consensus. It said the final dividend of 21.38 sen or a total of 26.38 sen for the year at 26.38 sen was higher than its 19.6 sen projection.
'FY11 KPIs suggest earnings growth of slightly below mid-teens. 4QFY10 - boosted by net interest income and low provisions but was partly offset by impairment loss on other assets,' it said.
HLIB Research said for FY12, all the line items were heading towards right directions.
It said RHB Cap had the strongest loan growth among peers in 2010.'' Approvals rose 31% and this would support continued growth in 2011. The asset quality had also improved.
'As promised by management, capital ratio has normalised in 4Q after the initial sharp drop post adoption of Basel II IRB approach in 3Q.'' Management expects net interest margins to be stable.
'Target core capital ratio of 9.5% which will be sufficient to meet Basel III requirements. Fine-tuned post FY10 results. ''Dividend payout projection raised from 25% to 30%,' HLIB Research said.
The research house said on Wednesday, Feb 23 RHB Cap's FY10 results in line with HLIB and consensus. It said the final dividend of 21.38 sen or a total of 26.38 sen for the year at 26.38 sen was higher than its 19.6 sen projection.
'FY11 KPIs suggest earnings growth of slightly below mid-teens. 4QFY10 - boosted by net interest income and low provisions but was partly offset by impairment loss on other assets,' it said.
HLIB Research said for FY12, all the line items were heading towards right directions.
It said RHB Cap had the strongest loan growth among peers in 2010.'' Approvals rose 31% and this would support continued growth in 2011. The asset quality had also improved.
'As promised by management, capital ratio has normalised in 4Q after the initial sharp drop post adoption of Basel II IRB approach in 3Q.'' Management expects net interest margins to be stable.
'Target core capital ratio of 9.5% which will be sufficient to meet Basel III requirements. Fine-tuned post FY10 results. ''Dividend payout projection raised from 25% to 30%,' HLIB Research said.
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