UOB Kay Hian’s latest financial updates reveal a mixed performance across Asian markets, with Bank Rakyat Indonesia (BBRI) experiencing a 9.9% year-on-year decline in earnings for the first eight months of 2025. The bank’s pre-provision operating profit fell by 4.4%, impacted by lower yields and increased operational expenses. Despite a modest 5.8% growth in loans, driven by corporate and consumer sectors, micro loans continued to contract. The bank maintains a “hold” rating with a target price of Rp4,250, supported by a 7.9% dividend yield.
In Malaysia, the banking sector remains robust despite macroeconomic headwinds. August statistics indicate steady loan growth at 5.4%, improved asset quality with gross impaired loans at historical lows, and healthy liquidity levels with a loan-to-deposit ratio below 90%.
Meanwhile, VS Industry in Malaysia reported disappointing results due to operational challenges and cost-cutting measures. However, the company remains optimistic about narrowing losses by March 2026. The valuation appears attractive at 13.0 times FY26 forecast price-to-earnings ratio, maintaining a “buy” rating with a target price of RM0.76.
In Singapore, real estate investment trusts (REITs) are poised to benefit from a shift in US monetary policy towards easing, which is expected to lower debt costs and expand yield spreads. UOBKH recommends buying blue-chip S-REITs, including CLAR, CLAS, KDCREIT, KREIT, and LREIT.
In Thailand, Krungthai Card is projected to report a slight increase in Q3 2025 net profit, supported by efficient asset quality control and anticipated government stimulus. Thanachart Capital, however, is expected to see a decline in quarterly net profit due to seasonal factors, though long-term improvements are anticipated from Q4 2025.
