Published: Wednesday March 20, 2013 MYT 8:42:00 AM
Regional expansion of Maybank’s Islamic banking is long-term catalyst
It said on Wednesday despite being one of the largest Islamic banking players, Maybank Islamic still sees ample opportunities for growth locally and abroad.
Indonesia is still underpenetrated and there are opportunities to expand into South Asia or even Hong Kong and China.
“We see the regional expansion of its Islamic banking (IB) business as a long-term catalyst for Maybank as it takes time to penetrate emerging markets. The near-term challenges include the lack of infrastructure and legal framework for IB.
“Maybank's DDM-based target price of RM10.80 (11.8% COE; 5% LT growth) is intact. Maintain Outperform given the positive growth prospects in the region,” said the research house.