Kuala lumpur: Malayan Banking Bhd's (Maybank) share price experienced a 0.55 per cent decline on Tuesday morning following the announcement of its acquisition of the remaining 30.95 per cent stake in Maybank Ageas Holdings Bhd.

According to BERNAMA News Agency, Maybank signed an Implementation Agreement with Ageas Insurance International NV to acquire the remaining stake in Maybank Ageas for RM4.83 billion. The acquisition is anticipated to be completed by the end of the third quarter of 2026, pending approval from Bank Negara Malaysia (BNM).

Hong Leong Investment Bank Bhd (HLIB) has indicated that the acquisition is strategically beneficial for Maybank, as it enhances the bank's control over a key insurance franchise and improves capital flexibility across the group. The bank aims to accelerate its bancassurance penetration, increase product cross-selling, and streamline its regional insurance operations into a more cohesive structure.

HLIB emphasized that achieving the targeted increase in bancassurance contribution and product holding is vital for driving sustainable premium growth and improving Etiqa's return on equity over the medium term. Consequently, HLIB has adjusted its financial year estimates for 2026 to 2028 upwards and maintained a 'hold' recommendation on Maybank, with an increased target price of RM11.10 from RM10.80.