[%cwmJ%]
Research by HLIB
Buy - TP RM5.75

"Good start"

AMMB’s 1QFY25 earnings climbed 5% QoQ on the back of positive Jaws, lower loan loss provision, larger writeback for commitments and contingencies, along with stronger associate contribution. Also, NIM widened sequentially. However, loans growth slowed and GIL ratio ticked up. Overall, results were largely in line with expectations but we raise FY25-26 profit by 2-3% to account for lower NCC, following new management guidance. Separately, we introduce FY27 estimates. All in all, AMMB’s risk-reward profile continues to be skewed to the upside; the adoption of FIRB creates scope for a larger dividend payout. Maintain BUY with a higher GGM-TP of RM5.75 (from RM4.60), based on 0.90x CY25 P/B.

Analyst:
Chan Jit Hoong, CFA, CPA
[%MHTb%]

$KLSE-AMBANK
Research by HLIB
Buy - TP RM5.75

"Good start"

AMMB’s 1QFY25 earnings climbed 5% QoQ on the back of positive Jaws, lower loan loss provision, larger writeback for commitments and contingencies, along with stronger associate contribution. Also, NIM widened sequentially. However, loans growth slowed and GIL ratio ticked up. Overall, results were largely in line with expectations but we raise FY25-26 profit by 2-3% to account for lower NCC, following new management guidance. Separately, we introduce FY27 estimates. All in all, AMMB’s risk-reward profile continues to be skewed to the upside; the adoption of FIRB creates scope for a larger dividend payout. Maintain BUY with a higher GGM-TP of RM5.75 (from RM4.60), based on 0.90x CY25 P/B.

Analyst:
Chan Jit Hoong, CFA, CPA
jhchan@hlib.hongleong.com.my