Latest news with #AMMB
The Star
a day ago
- Business
- The Star
AMMB returns to the FBM KLCI, HLFG excluded
KUALA LUMPUR: AMMB Holdings Bhd will replace Hong Leong Financial Group Bhd on the FBM KLCI, following a semi-annual review of the index. AMMB, which was knocked out of the 30-stock index in June last year, has returned to the stock exchange's Top 25 stocks by market capitalisation as of May 26, 2025, according to a joint statement by FTSE Russell and Bursa Malaysia. The FBM KLCI's reserve list - the five largest non-constituents by market capitalsation - now comprises Genting Bhd , IOI Properties Group Bhd , KPJ Healthcare Bhd , United Plantations Bhd and Westports Holdings Bhd . Menawhile, four new companies were added to the FTSE Bursa Malaysia Mid 70 Index, namely Kerjaya Prospek Group Bhd , Sam Engineering & Equipment Bhd, Sunway Real Estate Investment Trust and Tropicana Corp Bhd . Sime Darby Property will replace Scientex Bhd on the FTSE Bursa Malaysia Hijrah Shariah Index. According to the statement, the changes to the indices will take effect on Monday, June 23. The next semi-annual review is scheduled for December 2025.
New Straits Times
a day ago
- Business
- New Straits Times
AMMB returns to FBM KLCI, replacing Hong Leong Financial Group
KUALA LUMPUR: AMMB Holdings Bhd will rejoin the FTSE Bursa Malaysia KLCI (FBM KLCI) on June 23, replacing Hong Leong Financial Group Bhd. This follows the semi-annual review of the index series by FTSE Russell and Bursa Malaysia. The move marks a return for AMMB to the 30-stock benchmark index after it was removed a year ago. The FBM KLCI is the main barometer of the local bourse and is closely tracked by both local and international investors. In a joint statement today, FTSE Russell and Bursa Malaysia said the constituent change was made based on the index ground rules and market capitalisation as of May 26. The revision also saw four companies added to the FTSE Bursa Malaysia Mid 70 Index, namely Kerjaya Prospek Group Bhd, SAM Engineering & Equipment Bhd, Sunway Real Estate Investment Trust and Tropicana Corp Bhd. At the same time, AMMB was removed from the index following its promotion to the FBM KLCI. Bermaz Auto, D&O Green Technologies and WCE Holdings were also excluded. Meanwhile, Sime Darby Property will join the FTSE Bursa Malaysia Hijrah Shariah Index, replacing Scientex Bhd. All changes will take effect on Monday, June 23. The next semi-annual review is scheduled for December 2025. The reserve list for the FBM KLCI, which includes the five largest non-constituents by market capitalisation, now comprises Genting Bhd, IOI Properties Group Bhd, KPJ Healthcare Bhd, United Plantations Bhd and Westports Holdings Bhd. These companies may be added to the index if a current constituent is removed before the next review. FTSE Russell and Bursa Malaysia have jointly managed the index series since 2006, offering a range of indices that support market participants in benchmarking performance and developing investment products.
New Straits Times
27-05-2025
- Business
- New Straits Times
AMMB's FY25 results meet expectations with strong Q4 performance
KUALA LUMPUR: AMMB Holdings Bhd's financial year 2025 (FY25) results and dividends were within expectations as fourth quarter (Q4) FY24 earnings uplift came from expansion in net interest margin as well as loans and financing growth. AMMB posted a Q4 FY25 net profit of RM514 million, lifting the full-year sum to RM2 billion. RHB Research said AMMB's FY25 results were in line and marked a strong start to the group's Winning Together 5-year strategy. This formed 101 per cent and 102 per cent of the firm's and consensus' estimates, it said in a note. On dividends, the firm said AMMB declared a 19.9 sen final dividend per share (DPS), lifting the FY25 total to 30.2 sen, or a 50 per cent dividend payout ratio (DPR). "The FY25 DPS was a substantial 34 per cent year-on-year (YoY) increase and came in ahead of our initial 27 sen/45 per cent dividend payout ratio (DPR) forecasts. "Post dividends, the group's CET-1 ratio remains healthy at 14.8 per cent, a significant uplift from the 13.3 per cent recorded in FY24," it said. Meanwhile, RHB Research reported that AMMB considers its direct exposure to customers heavily reliant on U.S. trade as minimal, with no significant provision charges anticipated. According to the firm, the management believes that any secondary impact would likely appear through reduced customer activity and delayed capital expenditure decisions, although these effects have yet to materialise. "Management also remarked that its exposure to US-heavy trade clients is small, easing earlier concerns we had on the group. "However, our Neutral call is maintained, in line with our large-cap-focused, defensive-first sector strategy. "Our FY26 and FY27 forecasts are trimmed slightly by 2 per cent each, as we factor in less aggressive net interest margin (NIM) assumptions. Our target price is kept at RM5.70," it added.
Free Malaysia Today
21-05-2025
- Business
- Free Malaysia Today
Affin Bank-AMMB merger likely a bridge too far
The Sarawak government is said to be seeking to buy a stake in another bank to merge with its 31%-owned Affin Bank. PETALING JAYA : The Sarawak government's purported overtures for a potential merger between its unit Affin Bank Bhd and AMMB Holdings Bhd is unlikely to bear fruit, said CIMB Securities. A merger between the two banking groups will be dilutive and unlikely to be well received by the market, the research house said in a note today. Given concerns over shareholder dilution and post-merger direction, it said neither of the two likely merger scenarios, where Affin acquires AMMB or vice versa, appear particularly attractive. CIMB's note follows a recent report that the Sarawak government was mulling buying a stake in another bank to merge with Affin, in which it has a 31.3% stake. Sarawak acquired a 27% stake in Affin for RM1.78 billion from the Armed Forces Fund Board (LTAT) and its unit Boustead Holdings Bhd last November. Prior to that, it had a 4.8% stake in the mid-sized bank. According to reports, Sarawak was said to have approached Azman Hashim, who holds an 11.8% stake in AMMB through Amcorp Group Bhd, but talks have not moved forward. Meanwhile, Kuching has denied formal talks but has indicated openness to collaboration. AMMB wholly owns AmBank (M) Bhd, the country's sixth-largest banking group in terms of assets while Affin Bank is at No 7 among Malaysia's eight banking groups. Both merger scenarios would involve significant new share issuance. In the first scenario where Affin acquires AMMB, it would need to issue about 7.7 billion new shares, ramping up its total share base to over 10 billion. This would dilute the Sarawak government's stake to just 7.7% while Amcorp's holding would rise to 8.9%, making it the largest shareholder in the enlarged entity. 'We believe Scenario 1 is unlikely, as the Sarawak government's stake would be significantly diluted,' CIMB said. In the other scenario where AMMB acquires Affin, the former's share base would rise by nearly 64%. In this case, Sarawak would retain a 12.2% stake in the combined entity while Amcorp's interest would fall to 7.2%. Noting that AMMB's share price dropped following the merger speculation, CIMB believes this reflects 'investor unease' over potential changes in AMMB's strategic direction and the lack of clarity surrounding the proposed deal. 'Overall, we are not particularly enthusiastic about the potential merger under either scenario,' it concluded. Earlier reports said the Sarawak government had also considered Bank Muamalat Bhd, which is controlled by Syed Mokhtar Albukhary's DRB-Hicom Bhd, and Kuwait Finance House (M) Bhd, before reaching out to Amcorp Group. Affin's shares closed at RM2.71 today, valuing it at RM6.87 billion while AmBank was unchanged at RM5.36, giving it a market capitalisation of RM17.73 billion.
The Star
21-05-2025
- Business
- The Star
Affin-AMMB merger will be dilutive due to significant new shares issuance
KUALA LUMPUR: CIMB Securities Sdn Bhd expects the potential merger between Affin Bank Bhd and AMMB Holdings Bhd to entail significant issuance of new shares, which will likely be quite dilutive. In a note today, CIMB Securities said it assessed two possible merger scenarios for Affin and AMMB, although itwasnot particularly enthusiastic about the merger. "A merger between two domestic banking entities would necessitate the acquisition of the entire stake, given that banks are not allowed to hold two banking licenses. "If Affin acquires AMMB at a price-to-book value ratio (P/BV) of one time, Affin will need to issue a significant 7.7 billion new shares at the current market price of RM2.60 to acquire 100 per cent of AMMB,' it said. CIMB Securities said the scenario would mean a several-fold increase in Affin's issued shares to 10.25 billion from 2.5 billion shares currently. On the other hand, it said the second scenario would see AMMB acquiring Affin at a P/BV of one time, which would still lead to a significant 63.8 per cent increase in AMMB's issued shares base. "AMMB's target price would decline to RM4.27 (current: RM5.70) based on a return on equity of 7.8 per cent (current: 8.6 per cent) and a fair P/BV of 0.7 times (current: 0.9 times). "The target price may be increased if AMMB were to buy Affin at a P/BV of 0.6 times or lower (implying an acquisition share price of only RM2.75 or lower for Affin), which may lead to AMMB's target price moving up to RM6.35 for the financial year 2026,' it said. However, CIMB Securities noted that an excessively low acquisition price for Affin's shareholders may be deemed unpalatable by Affin's minority shareholders. Recently, news reports indicated that the Sarawak government may be looking to buy a stake in another bank and merge it with Affin, and AMMB's major shareholder has reportedly been approached. The Sarawak government has since denied sending any government representative to discuss the matter with Amcorp Group Bhd, but it is reported that it remains open to negotiating with any entity that wants to collaborate with the state government. - Bernama
