Another sharing on $MAYBANK / 1155 (MALAYAN BANKING BERHAD)

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*Maybank (HOLD/Target: RM10.56): Change of Group CFO*

*WHATS NEW*

Maybank announced the change of its group chief financial officer (CFO) Khalijah Ismail with immediate effect, following an internal inquiry according to Bursa announcement. Meanwhile pending the search for a new Group CFO, Malique Firdauz Ahmad Sidique will assume the position of acting group CFO, with effect from Feb 17, 2025. Malique has served as Maybank Islamic’s CFO since late 2023.


*COMMENT*

*An isolated case* Management stated that CFO Khalijah Ismail was terminated for non-compliance with internal requirements and processes. She underwent the standard investigation process applicable to all employees, with no involvement from Dato’ Khairulsaleh. Management emphasized that this is an isolated case with no financial impact.

*No financial implication* Key points highlighted by management were: (i) No falsification of financial accounts—statements remain true and fair, ii) N financial losses incurred, iii) The internal inquiry was not triggered by any law enforcement agency – this is an isolated incident, iv) Bank Negara Malaysia was informed, v) Controls are in place to safeguard shareholders’ interest.

*Solid CET1 and provision provides solid buffers* Additionally, the Group’s strong provisioning and buffers provide further reassurance, as reflected in a loan loss coverage ratio of 126%—well above the pre-pandemic average of 75%—and a solid CET1 ratio of 14.7%.

*Maintain HOLD and target price of RM10.56* (1.18x FY25F P/B, 10.2% ROE). The stock is currently trading at its historical mean P/B which we deem to be fair as ROE output is broadly in line with its historical mean levels. Current dividend yield of 6% is also comparable with its historical implied average yield of 6.5-6.8%.