[%TXSY%] 
Research by Public
Trading Buy - TP RM5.30

"Stronger Start"

AMMB Holdings started off the new financial year on stronger footing, with a 1QFY25 net profit of RM500.2m (+32.2% YoY, +5.0% QoQ) reported. Slightly ahead of our and consensus estimates at 28% of full-year forecasts, the discrepancy is largely on account of notably lower provisions (-93.6% YoY, -39.6% QoQ) due in part to write-backs, as improvements in NIMs also helped. Of some concern is the still-elevated incidences of newly-impaired loans, though tempered by better recoveries. We continue to note some encouraging developments in its expected numbers going forward nonetheless – improvements in net credit costs despite recent worries, and likely margin expansions. We remain encouraged over AMMB’s long-term prospects, reflected by these steady improvements on the operational front as the Group embarks on a new strategic journey under its Winning Together (WT29) plans. Our earnings estimates are left unchanged though we raise our dividend-based TP further to RM5.30 as we make adjustments to our valuation variables (i.e. risk premiums). We retain our Trading Buy call, with banking-related stocks attracting strong investor interest in recent times.

Analyst:
Ching Weng Jin
[%GYrW%]

$KLSE-AMBANK 
Research by Public
Trading Buy - TP RM5.30

"Stronger Start"

AMMB Holdings started off the new financial year on stronger footing, with a 1QFY25 net profit of RM500.2m (+32.2% YoY, +5.0% QoQ) reported. Slightly ahead of our and consensus estimates at 28% of full-year forecasts, the discrepancy is largely on account of notably lower provisions (-93.6% YoY, -39.6% QoQ) due in part to write-backs, as improvements in NIMs also helped. Of some concern is the still-elevated incidences of newly-impaired loans, though tempered by better recoveries. We continue to note some encouraging developments in its expected numbers going forward nonetheless – improvements in net credit costs despite recent worries, and likely margin expansions. We remain encouraged over AMMB’s long-term prospects, reflected by these steady improvements on the operational front as the Group embarks on a new strategic journey under its Winning Together (WT29) plans. Our earnings estimates are left unchanged though we raise our dividend-based TP further to RM5.30 as we make adjustments to our valuation variables (i.e. risk premiums). We retain our Trading Buy call, with banking-related stocks attracting strong investor interest in recent times.

Analyst:
Ching Weng Jin
research@publicinvestbank.com.my