Friday 29 Mar 2024
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KUALA LUMPUR (Oct 9): Alliance Bank's outlook for the next nine months isn't particularly rosy, Hong Leong Investment Bank says, anticipating weaker loan growth for the year ending March 31 and a lower non-interest-income run rate.

However, Hong Leong expects the Malaysian lender's net-interest margin will recover from 3Q FY 2020 onward, with bad-loan accounts having been fully provided for by then. 

Hong Leong cuts its FY 2020-FY 2022 net profit forecasts for Alliance by 4% to 6%, but thinks most of the negatives are already priced in and therefore maintains the stock at buy, though with a lowered target price of RM3.40 from RM3.70 previously. 

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