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Research by Kenanga
Outperform - TP RM5.50

"Credit Cost and NIMs to Hail Onward"

AMBANK’s 1QFY25 net profit was within expectations with signals for low credit cost levels to sustain as the group utilises on forward-looking provisions and overlays. Thanks to a focus on higher-margin loans and streamlining of unfavourable deposits, the group will likely have better reins on its NIMs with previously mentioned strategies to follow suit. We tweak our FY25F/FY26F earnings by +4% each and raise our TP to RM5.50 (from RM5.20) to reflect better confidence in our GGM inputs that ROE levels can be sustained (at 9.5%). Maintain OP.

Analyst:
Clement Chua 
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$KLSE-AMBANK
Research by Kenanga
Outperform - TP RM5.50

"Credit Cost and NIMs to Hail Onward"

AMBANK’s 1QFY25 net profit was within expectations with signals for low credit cost levels to sustain as the group utilises on forward-looking provisions and overlays. Thanks to a focus on higher-margin loans and streamlining of unfavourable deposits, the group will likely have better reins on its NIMs with previously mentioned strategies to follow suit. We tweak our FY25F/FY26F earnings by +4% each and raise our TP to RM5.50 (from RM5.20) to reflect better confidence in our GGM inputs that ROE levels can be sustained (at 9.5%). Maintain OP.

Analyst:
Clement Chua 
clement.chua@kenanga.com.my