PETALING JAYA: AMMB Holdings Bhd (AmBank) is prone to publish notable quarter-on-quarter earnings development subsequent quarter, backed primarily by decrease web credit score prices, stated Hong Leong Investment Bank (HLIB).
In an announcement, HLIB stated that even after the current worth restoration from the overhang of Australia and New Zealand Banking Group Ltd (ANZ) share disposal, it nonetheless finds AmBank’s risk-reward profile stays tilted to the upside.
“Furthermore, provisions made to this point for impaired loans are ample, in our opinion.
“Besides, the potential adoption of basis inner rating-based within the monetary 12 months 2025 may create headroom for a bigger dividend payout sooner or later,” it stated.
As such, HLIB retained its “purchase” name on AmBank, elevating its goal worth to RM4.60 from RM4.20 beforehand.
Earlier this month, ANZ agreed to promote 16.5% of the issued capital in AmBank through a block commerce at a worth of RM3.85 per share.
ANZ stated the sale would scale back its shareholding in AmBank from 21.7% to five.2%, in keeping with ANZ’s technique of simplifying the financial institution.
At 3.40pm, AmBank’s share worth was unchanged at RM4.15, giving it a market capitalisation of RM13.75 billion.
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