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AMMB on track for FY29 goals, says PublicInvest

AMMB on track for FY29 goals, says PublicInvest

New Straits Times13 hours ago
KUALA LUMPUR: AMMB Holdings Bhd is on the right track to achieve its financial goals by the financial year 2029 (FY29), following a solid FY25 performance, Public Investment Bank Bhd (PublicInvest) said.
AMMB hosted its Strategy Day on July 25, 2025, to provide updates since it unveiled the Winning Together 29 (WT29) strategy last year.
To recap, WT29 outlines the main financial goals: a higher dividend payout, a lower cost-to-income (CTI) ratio of 40 per cent and an improved return on assets (ROA) of 1.1 per cent.
Accoriding to PublicInvest, AMMB is targeting a five-year FY24 to FY29 net profit of eight per cent, underpinned by key initiatives across its core segments.
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This includes a six per cent compound annual growth rate (CAGR) for loans and deposits, with small and medium enterprises (SMEs) and mid-sized corporations leading its lending growth, the research firm said.
"Retail banking (RB) is expected to be the net funder of the group. Liability management and change in lending mix are expected to support net interest margin (NIM) expansion," it said.
Notably, AMMB delivered a strong net profit growth of 7 per cent, improved ROA to 1.02 per cent and raised its dividend payout ratio to 50 per cent.
While concerns with regard to slowing economic prospects may emerge in the second quarter (Q2) of FY26 onwards, PublicInvest thinks that AMMB's sound asset quality with sufficient overlays of RM439 million.
Meanwhile, it said the group's solid loan loss coverage (LLC) buffer should help to mitigate the negative impact.
"We retain our Neutral call and RM5.50 target price," it added.
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AMMB on track for FY29 goals, says PublicInvest
AMMB on track for FY29 goals, says PublicInvest

New Straits Times

time13 hours ago

  • New Straits Times

AMMB on track for FY29 goals, says PublicInvest

KUALA LUMPUR: AMMB Holdings Bhd is on the right track to achieve its financial goals by the financial year 2029 (FY29), following a solid FY25 performance, Public Investment Bank Bhd (PublicInvest) said. AMMB hosted its Strategy Day on July 25, 2025, to provide updates since it unveiled the Winning Together 29 (WT29) strategy last year. To recap, WT29 outlines the main financial goals: a higher dividend payout, a lower cost-to-income (CTI) ratio of 40 per cent and an improved return on assets (ROA) of 1.1 per cent. Accoriding to PublicInvest, AMMB is targeting a five-year FY24 to FY29 net profit of eight per cent, underpinned by key initiatives across its core segments. Featured Videos This includes a six per cent compound annual growth rate (CAGR) for loans and deposits, with small and medium enterprises (SMEs) and mid-sized corporations leading its lending growth, the research firm said. "Retail banking (RB) is expected to be the net funder of the group. Liability management and change in lending mix are expected to support net interest margin (NIM) expansion," it said. Notably, AMMB delivered a strong net profit growth of 7 per cent, improved ROA to 1.02 per cent and raised its dividend payout ratio to 50 per cent. While concerns with regard to slowing economic prospects may emerge in the second quarter (Q2) of FY26 onwards, PublicInvest thinks that AMMB's sound asset quality with sufficient overlays of RM439 million. Meanwhile, it said the group's solid loan loss coverage (LLC) buffer should help to mitigate the negative impact. "We retain our Neutral call and RM5.50 target price," it added.

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