Malayan Banking Berhad (KLSE:MAYBANK) Second-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For This Year
As you might know, Malayan Banking Berhad (KLSE:MAYBANK) recently reported its quarterly numbers. Malayan Banking Berhad reported RM7.5b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of RM0.22 beat expectations, being 3.2% higher than what the analysts expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Malayan Banking Berhad after the latest results.
Following the latest results, Malayan Banking Berhad's 19 analysts are now forecasting revenues of RM30.5b in 2026. This would be a credible 6.7% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be RM0.88, approximately in line with the last 12 months. Before this earnings report, the analysts had been forecasting revenues of RM30.6b and earnings per share (EPS) of RM0.88 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
See our latest analysis for Malayan Banking Berhad
There were no changes to revenue or earnings estimates or the price target of RM11.85, suggesting that the company has met expectations in its recent result. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Malayan Banking Berhad analyst has a price target of RM15.20 per share, while the most pessimistic values it at RM11.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that Malayan Banking Berhad's rate of growth is expected to accelerate meaningfully, with the forecast 14% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 6.8% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 6.1% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Malayan Banking Berhad is expected to grow much faster than its industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that in mind, we wouldn't be too quick to come to a conclusion on Malayan Banking Berhad. Long-term earnings power is much more important than next year's profits. We have forecasts for Malayan Banking Berhad going out to 2028, and you can see them free on our platform here.
Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Malayan Banking Berhad that you should be aware of.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.