Funding Costs and Market Swings Cloud the Earnings Outlook for Maybank
A Hong Leong IB analyst sees uncertain earnings for Maybank as funding costs rise and Malaysian government bond yields swing.
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what happened
Hong Leong IB analyst Raymond Ng, in a note reported by Market Talk, said Malayan Banking's earnings visibility could stay uncertain. Yields on Malaysian government securities are volatile, and funding costs are rising.
A potential rate hike could support net interest margins, but the benefit may lag increases in deposit costs. Ng reckons the bank's 13%-14% return-on-equity target for 2030 is within reach, though execution risks and technology spending could limit gains. Possible foreign outflows and prolonged volatility in Indonesia could keep the operating environment difficult, although Indonesia contributes a relatively small share of earnings.
why it matters
For investors, this signals that Southeast Asian banking stocks remain sensitive to interest rates and foreign capital flows. The analyst rates the stock a hold with a 10.50 ringgit target; at publication, shares were up 0.3% at 9.98 ringgit.
market impact
Maybank and Malaysian banks: rising funding costs and volatility weigh on earnings expectations.
tags
instruments
sources
- Maybank's Earnings Outlook Clouded by Funding Costs, Market Volatility — Market Talk, 22 October 2026 at 01:22 UTC
prepared by the newsmetry newsroom with ai assistance from the sources listed below. not investment advice.
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