Hong Leong Bank Likely to See Stronger Operating Income in 4Q
Hong Leong Bank 4Q Outlook
Early signs suggest operating income momentum at Hong Leong Bank could improve in fiscal 4Q, supported by stronger wealth-management activity and further net interest margin expansion from deposit repricing efforts, RHB IB analyst David Chong says in a note.
SME Customer Stress Signs
While the bank has started to see signs of stress among some small-and-medium enterprise customers since mid-May, management expects to maintain its asset quality guidance for the rest of 2026, he notes.
Provisions and Target Price
Hong Leong's 175 million ringgit pre-emptive provisions remain unutilized and could help cushion any emerging credit risks, he adds. RHB cuts Hong Leong Bank's target price to 24.70 ringgit from 25.70 ringgit, while maintaining a buy rating on the stock. Shares are 1.0% lower at 21.68 ringgit.
The news, analyses, and comments on this platform do not constitute investment advice. When making investment decisions, you should conduct your own research and consult with a qualified financial advisor if necessary. FiNews cannot be held responsible for any losses that may arise from the use of this information.