Maybank- bottom-line continued to grow

Results Update

Maybank reported a very good set of result for QE30/9/2013. Its net profit increased by 11% q-o-q or 16% y-o-y to RM1.746 billion while revenue was mixed- down 3% q-o-q but rose 5% y-o-y to RM8.392 billion,


Table: Maybank's last 8 quarterly results


Chart 1: Maybank's last 32 quarterly results

Technical Outlook

Please refer to my earlier post, but do note that the stock is still in a long-term uptrend line, with support at RM9.40. This means that the stock's technical outlook is still positive.

Valuation

Maybank (closed at RM9.55 yesterday) is now trading at a PE of 13.2 times (based on last 4 quarters' EPS of 73 sen). At this PE, Maybank is deemed attractive. From Table 2 below, we can see that Maybank is trading at PE multiple similar to AMBank & CIMB but nearly 20% cheaper than PBBank. As the top bank in Malaysia, I believe Maybank should command a higher multiple than 13 times.


Table 2: Top 5 Banks in Malaysia

Conclusion

Notwithstanding my earlier post, I believe that Maybank is a good banking stock for long-term investment.

Note: 
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, Maybank.