The latest Market Talks covering Financial Services. Exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.

0728 GMT - RHB Bank's newly unveiled three-year strategy seems ambitious but achievable, given its strong performance in 2024, MIDF Research analyst Imran Yassin Yusof says in a note. The lender targets ROE of over 12% by 2027, a cost-to-income ratio below 44.8% and a gross impaired loans ratio under 1.3%, he notes. However, achieving 7% domestic loan growth and 10% fee-based income growth may be challenging, depending on market conditions, he reckons. Any slowdown in domestic growth could pressure loan expansion, while weak financial markets may impact wealth management growth, he adds. MIDF maintains a buy rating on RHB and keeps its target price at MYR7.40. Shares are 0.3% higher at MYR6.90. (yingxian.wong@wsj.com)

0142 GMT - Malaysian banks are expected to see stable growth in 2025, supported by resilient GDP and the country's ongoing development plans which drive loan demand, RHB IB analysts say in a note. However, deposit growth appears to be lagging, potentially increasing competition for funding, they say. Banks with foreign exposure remain cautious about geopolitical risks and overseas rate cuts that could pressure margins, they note. Sector net profit is forecast to grow 6% in 2025, driven by solid income growth, though higher credit costs may offset gains. RHB maintains an overweight rating on Malaysian banks, as they continue to offer earnings resilience and attractive dividends despite market uncertainties, pegging AMMB, CIMB Group, Alliance Bank Malaysia and Hong Leong Bank as its top picks. (yingxian.wong@wsj.com)

0036 GMT - Commonwealth Bank of Australia is seen by Morningstar analysts as a good example of equity markets' failure to always reflect the true value of a business. They reckon that Australia's largest bank is worth about A$98.00 a share, or roughly 10% more than it was at the start of 2024. However, the company's shares have jumped about 40% in that time. The analysts tell clients in a note that for that move to be justified, expectations for all the cash the bank will ever earn--on a discounted basis--would have to be 40% higher than they were a year ago. They concede that they might be wrong on their specific valuation, but insist that the magnitude of the share-price move looks extremely hard to support. (stuart.condie@wsj.com)

2322 GMT - The departure of Westpac's consumer chief increases the Australian bank's execution risk, Morgan Stanley analyst Richard E. Wiles says. Writing in a note to clients, Wiles points out that Westpac is already looking for a new chief financial officer, has only just appointed a new business and wealth chief, and is also ramping up the overhaul of its tech platforms. Westpac's consumer unit accounted for 30% of fiscal 2024 profit and franchise performance improved under Jason Yetton's leadership, Wiles adds. MS has an underweight rating and A$29.20 target price on the stock, which is up 0.1% at A$30.59. (stuart.condie@wsj.com)

2249 GMT - Any further bids for Insignia Financial are unlikely to represent much of an advance on the A$5.00/share proposed by its current private-equity suitors, Barrenjoey analysts write in a note. Analysts Andrew Adams and Niva Chandrasekaran tell clients that there is scope for higher bids but any increase is likely to come at a much smaller increment than those seen in the process so far. They highlight the Australian wealth manager's acknowledgement that it plans to recommend an acquisition at A$5.00/share, in the absence of any superior proposal. Barrenjoey lowers its recommendation to neutral from overweight and keeps a A$4.95 target price, which includes a 10% takeover premium. Shares are at A$4.68 ahead of the open. (stuart.condie@wsj.com)

2238 GMT - Fonterra Shareholders' Fund rises 5% after the dairy cooperative upgrades its annual earnings view, putting the stock within sight of a new seven-year high. Fonterra now expects EPS of NZ$0.55-NZ$0.75 in FY 2025. That's up from prior EPS guidance of NZ$0.40-NZ$0.60. CEO Miles Hurrell says the upgrade reflects the underlying strength of Fonterra's core Ingredients business. It also signals resilience in the Consumer business that Fonterra wants to sell, raising investors' hopes that it will attract a favorable price from prospective buyers. Fonterra is at NZ$5.45 today, moving within sight of NZ$5.59 that represents its peak over the past 12 months and which was its highest level since January 2018. (david.winning@wsj.com; @dwinningWSJ)

(END) Dow Jones Newswires

March 10, 2025 04:20 ET (08:20 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.