KUALA LUMPUR, May 28 ― Shares of AMMB Holdings Bhd (AmBank) climbed during today morning's session, driven by a robust net profit report for the financial year ended March 31, 2024 (FY24).
At 10.15am, its shares rose by three sen to RM4.30, with 2.01 million shares traded.
The banking group recorded a net profit of RM1.87 billion for FY2024, a 9.3 per cent increase from the previous financial year's RM1.71 billion.
However, revenue declined to RM4.65 billion from RM4.71 billion due to a drop in net interest income (NII).
Following the results, Kenanga Investment Bank Bhd raised its FY25F earnings forecast by eight per cent, citing lowered provisioning assumptions and a slightly more bullish stance on loans growth for the group.
“We maintain our belief that AmBank is well-positioned for consolidation.
“The group's leadership in the small and medium enterprises profile, a high-growth segment, could accelerate market share growth in anticipation of improved medium-term economic prospects,” the research firm said in a note today.
Meanwhile, RHB Research reduced AmBank’s FY25F-26F net profit estimates by two per cent, to three per cent.
“These adjustments factor in lower-than-expected loans growth in FY24 leading to decreased NII, alongside stronger fee income assumptions driven by a robust advisory and deals pipeline,” it said.
RHB Research highlighted AmBank as a top sector pick for its dividend potential post the completion of capital rebuilding exercises.
Kenanga maintains an “Outperform” rating for the banking group with a revised target price (TP) of RM5.20, up from RM4.80, while RHB Research maintains its “Buy” call with a lowered TP to RM4.90 from RM5. ― Bernama
