AMMB Holdings Berhad
RHB Investment Bank
Date: 18 Apr, 2025
Company Update
Analysts:
Nabil Thoo
David Chong CFA
Share Price: RM5.20
Target Price: RM5.70
Rating: Neutral
FY2025 Forecast:
Net Profit: RM1,981m
EPS: RM0.60
DPS: RM0.27
RHBIB has Downgrade AMBANK to Neutral and reduced its TP from Rm6.70 to RM5.70. AMMB’s relatively large exposure to the trade and manufacturing sectors potentially leaves it more exposed to US tariff-induced uncertainties, while recent M&A news flow (involving Sarawak Government & Affin Bank) although unconfirmed may also weigh on its share price. The stock has risen by more than 30% since the start of 2024, and RHBIB does not expect a similar performance in 2025 preferring investors to take some chips off the table for now.
Date: 27 Mar, 2025
Company Update
Analysts:
Nabil Thoo
David Chong CFA
Target Price: RM6.70
Rating: Buy
FY2025 Forecast:
Net Profit: RM1,981m
EPS: RM0.60
DPS: RM0.27
From its recent Briefing Meeting, overall tone from AMBANK management was relatively positive. FY25Q4 net profit should remain resilient on stable NIM and moderating costs. AMBANKs long-term dividend guidance is now based on a higher payout percentage implying dividend upside if earnings hold up.
Date: 27 Mar, 2025
Company Update
Analysts:
Wong Ling Ling
Target Price: RM5.70
Rating: Neutral
FY2025 Forecast:
Net Profit: RM1,939m
EPS: RM0.585
DPS: RM0.293
Strong earnings growth on a QoQ basis to be driven by robust loans growth and lower operating expense although possibly offset by slight pressure on NIM and a lower CASA ratio. Capital reallocation of capital to grow its Business Banking (BB) and Retail SME (RSME) segments, which provides higher ROA of 1.57% and 3.2% respectively, in line with the bank’s target to grow its ROA to 1.1% by FY29 (9MFY25: 1.01%). Management has indicated that there are no plans for special dividends, bonus issue or corporate actions to conserve capital in order to maintain its credit rating. Public Investment Bank expects dividend payout in FY25 to be higher (FY24: 40%) and is retaining its Neutral call with Target Price of RM5.70. It opines that AMBANK share price is trading at a premium at 0.9x P/BV, above +2SD of its average 5-year P/BV.
Date: 21 Feb, 2025
Results Update
Q4 Ending: 31/3/24
Analysts:
Nabil Thoo
David Chong CFA
Target Price: RM6.50
Rating: Buy
FY2025 Forecast:
Net Profit: RM1,933m EPS: RM0.58
DPS: RM0.25
FY25 9 month YTD results were in line with RHBIB’s expectations., the group looks to be progressing well in its key objectives in its Winning Together strategic plan, particularly from a portfolio rebalancing perspective. While upside to the research house’s Target Price has narrowed recently, continued strong execution of key objectives and the subsequent follow-through impact to earnings offers further room for earnings and Target Price upgrades.
Date: 21 Feb, 2025
Results Update
Q4 Ending: 31/3/24
Analysts:
Keith Wee Teck Keong
Target Price: RM6.33
Rating: Buy
FY2025 Forecast:
Net Profit: RM1,942m EPS: RM0.586
DPS: RM0.321
AMBANK’S FY25 Q3 results in line with expectations, supported by provision writebacks. Its capital position remains strong, with further optimisation of Risk Weighted Assets potentially enhancing CET1 ratio. UOBKH upgrades AMBANK to BUY adjusting its target price from RM5.74 to RM6.33 (0.98x FY26F P/BV and 9.8% ROE), reflecting a lower Cost of Equity assumption to reflect its improved capital position and capital management potential.
Date: 20 Feb, 2025
Results Update
Q4 Ending: 31/3/24
Analysts:
Desmond Ch’ng, BFP, FCA
Target Price: RM6.45
Rating: Buy
FY2025 Forecast:
Net Profit: RM1,978m EPS: RM0.60
DPS: RM0.30
AMBANK’s FY25 9 Mth results were within expectations largely on account of lower-than-expected credit cost. Maybank Investment Bank raises its FY25/26/27E net profit forecasts by 2% tweaking both credit cost and NIM. Correspondingly. Target Price is raised from RM6.30 to MYR6.45 based on a target CY25 PBV of 1.0x (0.98x previously). BUY maintained.
Date: 21 Feb, 2025
Results Update
Q4 Ending: 31/3/24
Analysts:
Wong Ling Ling
Target Price: RM5.70
Rating: Neutral
FY2025 Forecast:
Net Profit: RM1,939m EPS: RM0.585
DPS: RM0.293
AMMB Holdings reported a FY25 Q3 net profit of RM486.5m dragged by lower non-interest income and higher operating expenses. 9 Month net profit increased by 6.9% YoY to RM1.49bn, driven by NIM expansion and lower impairment charges. Results were above estimates and were mainly due to lower credit cost. Public Investment Bank raised its FY25-27 forecast earnings by an average of 7% on a lower credit cost assumption. It increased its dividend-based TP to RM5.70. We although maintaining its Neutral call.
Date: 21 Feb, 2025
Results Update
Q4 Ending: 31/3/24
Analysts:
Chan Jit Hoong, CFA, CPA
Target Price: RM6.30
Rating: Buy
FY2025 Forecast:
Net Profit: RM1,979m
EPS: RM0.597
DPS: RM0.270
AMBANK’S core net profit of RM487m in q3 FY25 (-3% QoQ, brings 9MFY25 total to RM1.5bn (+53% YoY). This was slightly above HLIB’s estimates, due to lower-than-expected loan loss provision.
CORPORATE DEVELOPMENTS
17 Apr 2025
Media reports on 14/4/25 suggested that the Sarawak government had approached major shareholder Tan Sri Azman Hashim to express interest in buying his shares in AMMB Holdings Berhad. Azman is currently the second largest shareholder of the banking group with an effective stake of 11.8 percent, behind EPF’s stake of around 15%. An article in the NST suggests that Sarawak may attempt to engineer a merger between AMMB and Affin in which it holds a 31.3% stake, with Affin to lead the merged entity.
However Sarawak Premier Abang Johari dismissed the reports as mere speculation, saying that Sarawak had not sent any state government representative to discuss the matter with AmBank Group. Considering the wording of the Premier’s reply, this does not preclude the possibility of a private party trying to negotiate a deal for Sarawak although the likelihood of Tan Sri Azman Hashim selling out at the current share price level is extremely low. AMMB’s share price had reached a high of almost RM8.00 during 2013 during which its Net Profit was on an upward trajectory reaching RM2.0 billion just over a year later. Although earnings had since come off, AMMB’s prospects are currently very positive judging from the number of BUY calls with analysts expecting AMMB to scale new heights in terms of profitability and dividend payout. AMMB has a much better track record than Affin especially in terms of dividend payout and unlike Affin’s major shareholders previously, Tan Sri Azman Hashim is not under any financial pressure to sell. He has been instrumental to AMMB’s growth from its humble beginnings and for him to sell now would yield a very mediocre result for his life’s work and AMMB’s success and could only be because of personal reasons, or political pressure.
(Source: New Straits Times, TheEdge)
2 Nov 2024
Ambank CEO Jamie Ling and his team unveiled their Winning Together (WT29) strategy in June 2024. For the financial year ending March 31, 2025 it has set out three financial targets to be achieved by end of FY2029: 1) improve its dividend payout ratio to 50%-60% (from 40% in FY2024), placing it in the top quartile among peers; 2) lower its cost-to-income ratio to 40% from 44.2%; and 3) generate a Return on Assets of 1.1% (from 0.97%), translating into a Return on Equity (ROE) of 11% to 12%.
(Source: TheEdge)