Maybank share price up on Laos, Thailand plans

KUALA LUMPUR (Nov 16): Shares of MALAYAN BANKING BHD [] climbed on Wednesday on a news report that it was in talks for a Laos bank licence while it would use its Singapore-based brokerage Kim Eng Holdings Ltd to open a Thai bank.

At 4.03pm, Maybank was up 13 sen to RM8.40. There were 4.47 million shares done.

The FBM KLCI fell 2.48 points to 1,474.74. There were 1.73 billion shares done valued at RM1.15 billion. Losers beat gainers 529 to 263 while 243 stocks were unchanged.

Dow Jones news wire reported that Maybank would focus on Southeast Asia opportunities. The report also said Maybank was in talks for a bank licence in Laos while it would also use its unit Kim Eng to open a Thai bank.

In January, 2011 Mayabnk acquired a strategic 44.6% stake in Kim Eng Holdings Ltd at S$3.10 per share, amounting to S$798 million (RM1.9 billion) with a view to take over the Singapore'based broking firm.

Maybank quarterly net profit up 25.1% to RM1.286b

KUALA LUMPUR (Nov 14): MALAYAN BANKING BHD [] net profit for the three months ended Sept 30, 2011 rose 25.1% to RM1.286 billion from RM1.028 billion a year earlier.

The banking group said on Monday, Nov 14 that its revenue for the quarter rose to RM6.07 billion from RM5 billion in 2010.

Earnings per share was 17.20 sen compared to 14.53 sen in 2010, while net assets per share was RM4.41.

Maybank had on July 11 this year announced the change of its financial year end from June 30 to Dec 31.

The first new financial year would end on Dec 31, 2011 with a shorter 6-month period from July 1, 2011 to Dec 31, 2011.

Reviewing its performance, Maybank said its net interest income for the period under review rose 5.6% or by RM99.1 million due mainly to growth in its loans and advances (excluding Islamic finance) of 17.8%.

It said income from Islamic Banking operations continued to grow, rising by 52.7% to RM516.3 million, on the back of growth in financing and advances of RM2 billion.

Maybank said net income from insurance business rose 11.2% to RM96.5 million due to higher takaful revenue account.

It said non interest income rose 28.1% to RM1.22 billion, while brokerage income rose by RM132.8 million.

On its outlook, Maybank said the loans growth in Malaysia was expected to be mainly driven by the rollout of the Economic Transformation Programme projects and domestic consumption.

It said credit demand in Singapore was anticipated to moderate with growth remaining broad based, while in Indonesia strong loans growth was expected to be sustained due to robust domestic demand.

'With continued pressure on narrowing margins, the group will continue to be selective in pursuing loans growth and will focus on sustaining asset quality through sound credit risk management policies and practices,' it said.

Maybank said that barring unforeseen circumstances, it expected to record better performance for the financial period ending Dec 31, 2011.

CIMB Research has technical sell on Maybank

KUALA LUMPUR: CIMB Equities Research has a technical sell on MALAYAN BANKING BHD [] at RM8.60'' at which it is trading at a FY12 price-to-earnings of 11.8 times and price-to-book value of 2.0 times.

It said on Wednesday, Sept 14 the'' recent countertrend rebound appears to have found strong resistance near its moving averages. The recent failure to breakout above them is likely negative for the stock.

'MACD has moderated a tad after 'testing' its zero line resistance while its RSI has turned downwards again after 'testing' the 50-pts mark.

'As the downtrend continues to play a part, there is a good chance that prices may continue on lower from here. Time to cash in now as we expect prices to weaken further towards RM7.50-RM7.75 levels next,' it said.

Court rules in Maybank's favour against Bintai subsidiary

KUALA LUMPUR: The Kuala Lumpur High Court has ruled in favour of MALAYAN BANKING BHD [] in its suit against BINTAI KINDEN CORPORATION BHD []'s subsidiary Kejuruteraan Bintai Kindenko Sdn Bhd (KBK).

Bintai Kinden said on Monday, Sept 5 the court ruled in Maybank's favour on its demand against KBK of RM15.77 million together with cost and interest of 8% per annum from April 2007 until full payment by KBK.

'The board of directors of Bintai Kinden is of the view that the suit is without merit and KBK will file an appeal on the above judgement to the Court of Appeal,' it said.

To recap, KBK was the fourth defendant in a suit brought about by Maybank for an amount totaling RM15.77 million.

'The action is in relation to a demand made by Maybank based on a notice of assignment of proceeds, payable by KBK to its sub contractor, in favour of Maybank,' it said.

#Flash* Maybank says merger plan with RHB Cap is off

KUALA LUMPUR: MALAYAN BANKING BHD [] said the possible merger of its business with RHB CAPITAL BHD [] has been called off.

'In light of recent developments and following further deliberations, the board of directors of Maybank has decided not to pursue the possible merger at this juncture,' Maybank said on Thursday, June 23.

RHB Cap share price fell 57 sen to close at RM9.03 while Maybank shed two sen to RM8.82.

Mitsubishi UFJ Securities to sell 29.16% Kim Eng stake to Maybank

KUALA LUMPUR: Mitsubishi UFJ Securities Holdings Co., Ltd. (MUSH) has agreed to dispose of its 29.16% stake in Kim Eng Holdings Ltd to MALAYAN BANKING BHD [].

MUSH said on Tuesday, June 7 that it had applied for the tender offer made by Maybank's affilitate -- Mayban IB Holdings Sdn Bhd ' for all of the Kim Eng shares which it held.

It said that it was in its interest from the perspective of its strategy and return on investment to sell all the shares.

'As a result of the sale, MUSHD will dissolve the Strategic Alliance Agreement for the brokerage of Asean equity with Kim Eng, and Kim Eng would be excluded from MUSHD's equity method affiliates,' it said.

MUSHD said it would focus on further enhancing and expanding its securities business through collaboration with Bank of Tokyo-Mitsubishi UFJ Ltd while continuing to promote its alliance with Morgan Stanley overseas.

'In Asean related business, we are also considering greater collaboration with the CIMB Group, a financial institution which is already a comprehensive alliance partner of Bank of Tokyo-Mitsubishi UFJ and whose operations include commercial banking, investment banking, securities and asset management business throughout the Asean region,' it said.

Maybank gains on 3Q results, outlook

KUALA'' LUMPUR: MALAYAN BANKING BHD [] shares advanced on Friday, May 13 after the bank said it ''expects earnings for FY11 ending June 30 to surpass the record net profit it achieved in FY10.

Maybank's net profit for 3QFY11 rose 11%''to RM1.14 billion from RM1.03 billion.

At 9.35am, Maybank was up 16 sen to RM8.90 with 329,700 shares traded.

Maybank's revenue for the three months in review was 11.8% higher at RM5.13 billion compared with RM4.6 billion a year ago.

Maybank said on Thursday, May 12 that the results were boosted by strong loans growth, increased revenues across almost all business segments of the group and significantly lower allowance for losses on loans which declined by almost half.

OSK Research in a note May 13 maintained its buy call on Maybank with a target price of RM10.07.

'Its previously conservative provisioning coupled with continued improvement in asset quality are beginning to bear fruit, with loan loss provisions declining 49.8% q-o-q.

'The combination of continued improvement in domestic asset quality, loans growth traction and benefits from the rising interest rate environment will boost the group's earnings momentum in FY12,' said OSK Research.

#Stocks to watch:* Dialog, Maybank, Fitters, Media Prima

KUALA LUMPUR: Stocks which could see strong trading interest on Friday, May 13 include DIALOG GROUP BHD [], MALAYAN BANKING BHD [], FITTERS DIVERSIFIED BHD [] and MEDIA PRIMA BHD [].

Petroliam Nasional Bhd is reported to be investing up to RM50 billion in new integrated downstream project to expand its business and further spur the growth of Malaysia's oil and gas downstream sector. This will be the single largest investment in the country in a project.

The signing ceremony will be on Friday in the presence of Prime Minister Datuk Seri Najib Tun Razak.

Then project would likely be the independent deepwater petroleum terminal project at Pengerang, Johor which is jointly undertaken by Dialog and Vopak.

To recap, Dialog and Vopak's combined investment in the terminal would be RM5 billion and over a seven year period. Dialog's investment would be RM2.5b of which 30% would be from equity and 70% from project financing.

Dialog and Vopak are the core facilitators for the project, which is viewed as an entry point project (EPP) under the government's Economic Transformation Policy (ETP).

Maybank expects earnings for FY11 ending June 30 to surpass the record net profit it achieved in FY10.

Maybank's net profit for 3QFY11 rose 11%''to RM1.14 billion from RM1.03 billion. Revenue for the three months in review was 11.8% higher at RM5.13 billion compared with RM4.6 billion a year ago.

Fitters' earnings rose 107% to RM5.73 million from RM2.56 million a year ago, boosted by its new palm oil extraction business. Revenue was RM102.74 million, up 193% from RM35.03 million. Earnings per share were 2.65 sen versus 1.29 sen.

Media Prima's net profit for the first quarter ended March 31, 2011 fell 23.7% to RM34.79 million from RM45.57 million a year ago, in line with general seasonal advertising trends.

Revenue for the quarter rose to RM354.19 million from RM323.67 million in 2010. Earnings per share werea 3.36 sen while net assets per share was RM1.27.

Reviewing its performance, Media Prima said on Thursday, May 12 that the first quarter of the year had always been the lowest in terms of advertising spending as compared to other quarters, when most advertisers start their promotional roll out.

#Stocks to watch:* Banks, oil and gas, Shell, Dialog, Hartalega, HL Bank

KUALA LUMPUR: Stocks which could attract trading interest on Wednesday, May 11 following fresh corporate news and developments include banks, oil and gas counters, HARTALEGA HOLDINGS BHD [], Shell Refining Company (Federation of Malaya) Bhd and DIALOG GROUP BHD [].

Maybank is raising its deposit and base lending rates effective Wednesday. Its deposit rates will be revised upwards by up to 30 basis points, while its base lending rate (BLR) will be increased by 30 basis points from 6.30% per annum to 6.60% per annum.

RHB Bank Bhd is also raising the BLR from 6.30% per annum to 6.60% per annum, effective Wednesday.

Oil and gas related counters will continue to be in focus, with the latest news that Petroliam Nasional Bhd plans to invest about RM50 billion in an integrated downstream oil and gas complex in Pengarang.

Shell Refining posted net profit of RM135.54 million in the first quarter ended March 31, 2011, up 131% from RM58.61 million a year ago. Revenue increased by 29% to RM3.20 billion from RM2.48 billion while earnings per share were 45.18c versus 19.54 sen a year ago. Shell Refining reported after tax stockholding gains of RM153 million for 1Q11.

Dialog and its business partner Roc Oil Company Limited, Australia are presently tendering for upstream oil & gas prospects in Malaysia. Dialog said that they would look into a possible joint venture if the tender was successful.

Meanwhile, Dialog will report its earnings after market close on Wednesday.

Hartalega's net profit for the fourth quarter ended March 31, 2011 rose 12.9% to RM52.39 million from RM46.41 million a year ago, driven by continuous expansion in production capacity, increase in demand, effective cost control and improvement in production processes.

Revenue for the quarter was up 17.8% to RM192.52 million from RM163.39 million. Earnings per share were 14.41 sen while net assets per share was RM1.36.

HONG LEONG BANK BHD [] has proposed to increase the size of the renounceable rights issue by RM1 billion from RM1.6 billion to RM2.6 billion to further strengthen its capital base and for working capital purposes.

HONG LEONG FINANCIAL GROUP BHD [] is providing a RM2.3 billion loan Hong Leong Bank to assist it with its risk weighted capital adequacy ratio (RWCAR).