Broker Name: CGS International Securities
Date of Report: March 19, 2026
Excerpt from CGS International Securities report
Report Summary
- CGS International maintains an Overweight rating on Malaysian banks, expecting minimal earnings impact from the Middle East conflict and higher oil prices, as banks have strong asset quality and significant management overlays to cushion against credit risks.
- A 25bp cut in the Overnight Policy Rate (OPR) would only trim sector net profit by about 1.6%, and every 10% rise in gross impaired loans (GIL) would reduce sector net profit by 3%. Banks’ share prices have been largely defensive, and dividend yields remain attractive, with Maybank, RHB Bank, and AMMB as top picks.
- Potential re-rating catalysts include higher dividend payouts and stronger capital market income, while downside risks are weaker economic growth, deposit competition, and further OPR cuts.
- Malaysian banks are well-placed on ESG, with Maybank highlighted for its proactive ESG initiatives and green financing targets.
Above is an excerpt from a report by CGS International Securities. Clients of CGS International Securities can be the first to access the full report from the CGS International Securities website: https://www.cgs-cimb.com
