OSK Research upgrades forecast on Maybank's earnings growth

Lender's conservative attitude towards provisioning key factor for OSK's 2.6% earnings growth forecast in 2010.

OSK Research is now more upbeat on Maybank Group's earnings growth prospects, as it is well positioned to ride on the economic recovery.

OSK Research said in a report on Wednesday that Maybank's conservative provisioning in the past, improving asset quality, strengthening capital base and larger regional footprint, will help propel earnings.

"We have raised our financial year (FY)10 and FY11 earnings forecast by 2.6 percent and 5.5 percent respectively, on the back of stronger loans growth and lower credit cost assumptions.

"This is in addition to our return on equity (ROE) forecast to 13.1 per cent (FY10) and 14.0 per cent (FY11)," OSK Research said.

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