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

0856 GMT - Public Bank's dividend yield is forecast to exceed 5% from 2025 based on organic growth alone, with further room to raise the payout due to excess capital, CIMB Securities analyst Rachel Huang says in a note. Basel III rule changes could boost the lender's Common Equity Tier 1 ratio, implying room to right-size its capital, she says. Despite a MYR464 million goodwill impairment from its Hong Kong unit, the impact on Public Bank's estimated 2025 ROE and book value should be minimal, she says. The lender's reversal of pre-emptive provisions could further support dividend growth, she adds. CIMB maintains a buy rating on Public Bank and keeps its target price at MYR5.60. Shares are unchanged at MYR4.45. (yingxian.wong@wsj.com)

0849 GMT - Meiji Yasuda Life's deal with Legal & General America is expected to positively impact the Japanese insurer's credit profile, Fitch Ratings analysts say. The deal takes into account the strong position of L&G's Banner Life in the steadily expanding U.S. individual life insurance market and pension risk transfer business, as well as improved global diversification for Meiji Yasuda, the analysts note. Fitch expects the impact on Meiji Yasuda's capital adequacy and financial leverage to be minimal and manageable, citing its consolidated net assets and cash equivalents. The group's strong position in the Japanese life insurance market should also help maintain overall sound credit fundamentals. (fabiana.negrinochoa@wsj.com)

0842 GMT - DBS Group's strong dividend yield will support its share price, Carmen Lee of OCBC Investment Research writes in a note. The Singapore lender delivered another year of record profit, raised its ordinary dividend and announced an additional capital return for 2025, Lee highlights. That reflects an attractive dividend yield of about 6.7%, higher than most Singapore dollar income-yielding assets, Lee says. Despite a more challenging external environment due to tariff threats and possible policy changes by major economies, Asia is likely to be more resilient than other regions, and DBS remains attractive, Lee says. She raises the fair value estimate on the bank to S$50.00 from S$43.60 while keeping a buy rating. Shares are 1.8% higher at S$45.50. (kimberley.kao@wsj.com)

0831 GMT - CAB Payments will likely make a strategic pivot this year following the departure of senior leadership members, Shore Capital's analyst Vivek Raja says. CFO and executive director Richard Hallett stepped down on Monday, following the departure of other senior management in the past year. Shore Capital maintains its buy recommendation on the stock, expecting the London-listed fintech to return to a meaningful growth trajectory, Raja says. Shares are down 1.3% at 0.62 pounds. (cristina.gallardo@wsj.com)

0815 GMT - Meiji Yasuda's $2.3 billion deal with Legal & General looks set to boost the Japanese insurer's profits and premiums, CreditSights analysts say. Acquiring L&G's U.S. protection business and 20% of its pension risk transfer business will double Meiji Yasuda's overseas insurance premiums to more than Y1 trillion, with core profits set to top Y100 billion versus Y91.4 billion predeal, Trung Tran and Larissa Knepper say in a report. The deal is in line with the company's plan to expand market share and enhance asset management, boosting overseas operations and profit stability, they add. "We continue to view Meiji Yasuda as an excellent credit with a strong market presence in Japan, good geographical diversification and high solvency underpinned by a clear capital management strategy," they say, keeping an outperform recommendation on the insurer. (fabiana.negrinochoa@wsj.com)

0702 GMT - DBS Group's total shareholder return for 2025 remains unclear, Morningstar senior equity analyst Michael Makdad says in a note. The capital return dividend DBS announced for the current year means the bank will pay more in dividends than previously forecasted, Makdad notes. However, the timeline for when DBS's planned share buyback will be completed is still uncertain, making it difficult to determine if the total shareholder return will exceed forecasts, he says. Still, 4Q earnings were as strong as expected, and DBS has guided for net interest income to grow in 2025, even after assuming two U.S. Fed rate cuts, Makdad adds. Loan demand and fee income growth were also strong in 4Q, he adds. (kimberley.kao@wsj.com)

0651 GMT - Singapore banks' return on equity outlook appears optimistic in the long term, Jefferies analysts write in a note. Incremental returns are likely tied to longer-term growth, making it more exciting than near-term capital return upside, analysts Sam Wong and Shujin Chen say, noting the capital return dividend DBS Group announced for 2025. However, this reflects DBS's commitment to shareholder return, while also focusing on long-term growth, they add. This is expected to boost its share price. Wong and Chen describe DBS's 2024 earnings as "another rabbit out of the hat," demonstrating "strong underlying business performance... even in areas that were slightly softer." Jefferies retains a buy rating on DBS with a target price of S$49.00. The stock is 2.5% higher at S$45.78. (kimberley.kao@wsj.com)

0344 GMT - Malaysian banks are poised to benefit from Johor state's economic expansion policies, with loan growth in the state outpacing the national average last year, TA Securities analyst Li Hsia Wong says in a note. Increased business activity is driving demand for corporate financing, M&A advisory and capital market transactions, while fee-based income from trade finance and treasury services is also expected to rise, she adds. Banks with a strong presence in Johor and Singapore, such as Maybank, CIMB, Hong Leong Bank and RHB Bank, are well-positioned to capitalize on cross-border financial services, she says. TA Securities maintains an overweight rating on the Malaysian banking sector, pegging Malayan Banking, CIMB Group and Public Bank as its top recommendations. (yingxian.wong@wsj.com)

(END) Dow Jones Newswires

February 10, 2025 04:20 ET (09:20 GMT)

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