“Maybank, which remains our dividend favourite (7% to 8% yield), provides shelter for investors preferring more secured returns. It noted that the banking group also commands one of the highest CASA (current account savings accounts) books amongst the large-cap banks. It said CIMB is selected for its defensive non-interest income (NOII) with trading performances supported by regional entities. “Although these threats may only be more apparent in later periods, we believe the higher dividend yield averages from present price points and more generous payouts could keep investors sticky for upcoming quarters,” Kenanga Research said in a report.įor the 1Q23 period, the research firm has CIMB Group Holdings Bhd, Malayan Banking Bhd (Maybank) and Alliance Bank Malaysia Bhd (ABMB) on its list of stock picks because of their defensive angles and firm market positioning. Easing credit cost and lower effective taxes will drive overall earnings growth,” said Kenanga Research.Īccording to the research firm, the biggest risk remains severe drags in asset quality, which could be triggered by a recession or another disruption in global supply chains.
“While near-term interest income may come in lower from diminishing loan growth and eroding interest margins, non-interest performances are expected to improve. Results were mostly as expected with one positive surprise. “Post-4Q22 earnings season, we maintain our ‘overweight’ rating on the banking sector. PETALING JAYA: Amid recessionary fears, banks may gain interest as investors seek shelter in higher yielding stocks.Īnalysts say valuations of banking stocks are undemanding despite their shares having risen following the reopening of the economy.īusiness-wise, post the fourth quarter 2022 (4Q22) earnings, Kenanga Research said the near-term outlook for the sector will be held up by resilient earnings.
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