Ambank / Azman Hashim

[winston]

not vested

1015 AMBANK (BUY)
Earnings in line, outlook steady

AMMB’s 1HFY26 earnings rose 5% YoY on 6.9% revenue growth, largely supported by improvement in NOII (+28.2% YoY) and NII (+2.9%).

NIM contracted 4ppt QoQ to 1.97% in 2Q but should stabilise in 2HFY26 with cost measures.

NCC surged 34.8bp QoQ to 60bp on RM99m overlay and higher SME provisions.

Results were in line, with forecasts unchanged.

We continue to view AMMB’s risk‑reward profile as skewed to the upside.

Valuations remain undemanding, with potential for higher dividend payouts.

In addition, the build‑up in FVOCI reserves provides management flexibility to pocket higher investment gains, serving as a profit buffer during softer periods.

Maintain BUY with a GGM‑derived TP of RM6.20, based on 0.95x FY26 P/B.

Source: HLIB

[winston]

not vested

2QFY26 results above expectations

BUY maintained; TP raised to MYR6.45 AMMB’s 2QFY26 results were above expectations, predominantly due to higher investment gains and provision writebacks.

Our FY26-28E earnings forecasts are raised by approximately 3% per year, while our TP is raised to MYR6.45 from MYR6.05, from rolling forward valuations to CY26 from CY25 before (CY26E PBV of 0.95x, COE: 10%, g: 4%, ROE:9.7%).

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/500760.pdf