LKF Partners

AMMB HOLDINGS BERHAD (AMBANK 1015)

| Result Updates

QUARTERLY RESULTS

Quarter Ending Jun-24 Sep-24 Dec-24 Mar-25 Jun-25 Sep-25 Dec-25
Q1 Q2 Q3 Q4 Q1 Q2 Q3
Interest Income 1,529,331 1,531,739 1,565,812 1,522,387 1,529,612 1,504,344 1,516,029
Interest Expense (957,919) (933,067) (962,076) (938,175) (920,079) (897,834) (897,488)
Net Interest 571,412 598,672 603,736 584,212 609,533 606,510 618,541
Islamic Banking Income 303,785 348,136 258,748 360,355 357,811 362,705 360,692
Other Operating Income 271,013 264,830 358,277 297,908 292,733 292,057 270,316
Other Operating Expenses (520,633) (529,935) (570,817) (576,413) (563,922) (567,837) (581,009)
Prov for Loan Losses (12,254) (95,915) (37,864) (48,813) (87,073) (208,731) (14,799)
Writebacks & Recoveries 0 50,966 0 0 14,630 185,007 1,848
Associates 32,331 16,779 19,833 38,903 30,665 30,570 30,047
Profit Before Tax 645,654 653,533 631,913 656,152 654,377 700,281 685,636
Tax Expense (145,524) (152,861) (145,456) (142,045) (138,320) (165,740) (156,001)
Profit After Tax 500,130 500,672 486,457 514,107 516,057 534,541 529,635
Non-controlling Interests 67 (99) 32 (181) 119 43 (56)
Net Profit After Tax 500,197 500,573 486,489 513,926 516,176 534,584 529,579
Diluted EPS (sen) 15.13 15.14 14.71 15.55 15.55 16.16 16.01
Pre-provision PBT 657,908 749,448 669,777 704,965 741,450 909,012 698,587
Total Income 1,178,541 1,228,417 1,240,594 1,281,378 1,290,742 1,291,842 1,279,596
Opex / Total Income 44.2% 43.1% 46.0% 45.0% 43.7% 44.0% 45.4%
BALANCE SHEET
Gross Loans 132,671,695 134,490,567 137,059,365 138,883,354 138,180,541 140,521,644 142,691,506
Impaired Loans (2,011,542) (1,940,747) (1,947,324) (1,753,286) (1,837,430) (1,891,993) (1,829,435)
Net Loans 130,660,153 132,549,820 135,112,041 137,130,068 136,343,111 138,629,651 140,862,071
Total Assets 196,179,709 196,945,874 197,512,495 199,043,588 196,181,377 200,342,996 202,203,329
Deposits from Customers 135,479,418 136,313,570 138,415,663 141,547,041 137,987,229 140,042,175 143,689,459
Deposits from Financial Institutions 7,902,293 8,676,906 7,833,262 7,579,328 6,941,337 8,508,075 7,727,541
Total Liabilities 176,165,901 176,974,778 177,440,945 178,421,869 175,616,848 179,275,659 181,045,185
Net Assets 20,013,808 19,971,096 20,071,550 20,621,719 20,564,529 21,067,337 21,158,144
Share Capital 6,376,240 6,376,240 6,376,240 6,376,240 6,376,240 6,376,240 6,376,240
Shareholders Equity 20,012,847 19,970,036 20,070,822 20,620,810 20,563,739 21,066,590 21,158,144

ANALYST RATINGS

Results Announcement Date: 25 February 2026 (Closing Share Price: RM6.54)
Below is a summary of analyst ratings and forecasts for AMMB Holdings Bhd as at 26 February 2026:
Rating Target Price EPS
FY2026 (E)
EPS
FY2027 (E)
DPS
FY2026 (E)
DPS
FY2027 (E)
Remarks
Hong Leong Investment Bank Buy 7.70 0.63 0.66 0.30 0.32
Maybank Investment Bank Buy 7.40 0.65 0.67 0.32 0.34
RHB Investment Bank Neutral 7.00 0.62 0.63 0.34 0.36 RHBIB upgraded from Neutral to Buy on 20/4/26 and increased its FY2027 DPS forecast to 37 sen.
Average 7.37 0.63 0.65 0.32 0.34
*(E) = Estimate/Forecast
Results Announcement Date: 26 November 2025 (Closing Share Price: RM5.88)
Below is a summary of analyst ratings and forecasts for AMMB Holdings Bhd as at 27 November 2025:
Rating Target Price EPS
FY2026 (E)
EPS
FY2027 (E)
DPS
FY2026 (E)
DPS
FY2027 (E)
Remarks
Affin Hwang Investment Bank Buy 6.60 0.63 0.659 0.30 0.31
Maybank Investment Bank Buy 6.45 0.62 0.65 0.31 0.33
RHB Investment Bank Neutral 6.20 0.62 0.63 0.34 0.36
Public Investment Bank Neutral 5.70 0.607 0.642 0.325 0.345
Hong Leong Investment Bank Buy 6.20 0.60 0.637 0.30 0.318
Average 6.23 0.62 0.64 0.32 0.33
*(E) = Estimate/Forecast

COMMENTARY

AMMB Holdings (Ambank) Results Update (Dec 2025)

AMMB Holdings (Ambank) Results Update FY2026Q3 (DECEMBER 2025)

Results Announcement Date: 25 February 2025 (Closing Share Price: RM6.54)
Net Profit was up 8.9% against pcp on the back of lower impairments and slightly higher Net Interest Income. Overall expenses grew 5.6% YoY to RM1,712.8 million due to higher personnel costs. Net Loans were up 4.3% from 31/12/25.

For the 9 month period from 1/4/25 to 31/12/25, Customer deposits grew 1.5% to RM143.7 billion, mainly driven by Time deposits. At the same time, CASA Deposits decreased 5.5% RM48.2 billion. As at 31/12/26, these deposits comprised make up 33.6% of AMMB’s loan book. Net impairment charges amounted to RM109.1 million compared to RM95.1 mil for 9MFY25, mainly due to higher provisions in Business Banking (with an overlay provision of RM99.3 million taken in the SME portfolio). This was partially offset by higher writeback of provision in Wholesale Banking and higher recoveries of RM50.7 million mainly from a retail debt sale.

Management targets were broadly maintained:

  • Management increased credit cost guidance from 20-30bps previously to 21-25bps.
  • Loan growth in line with GDP growth.
    Stable Net Interest Margin.
  • ROE target of around 10%.

Based on this, expected FY2026 Net Profit works out to be around RM2.1 to 2.2 billion or EPS of around 64 sen per share which means Q4FY26 Net Profit is expected to be around RM550 mil. AMMB remains committed to double its DPS by FY29.

CIR was 45.4% for 9MFY25, still well short of Ambank’s 40% target under its WT29 (Winning Together) Strategy, while ROE is still below its 11-12% target.

AMMB Holdings (Ambank) Results Update (Sep 2025)

AMMB Holdings (Ambank) Results Update FY2026Q2 (SEPTEMBER 2025)

Results Announcement Date: 26 November 2025 (Closing Share Price: RM5.88)

Ambank’s Net Profit was up 6.8% from pcp. Net interest income was up slightly (+1.3%), while higher-than-expected investment gains and a write-back of impairment provision on a corporate bond helped to drive earnings higher, albeit offset in large part by additional management overlays of around RM99 million on its Retail SME loan portfolio. Key highlights:

  • Cost-Income Ratio (CIR) of 43.8%.
  • Before the impact of Loan Loss Provision and Writebacks, PBT grew to RM1.45 billion for 2026H1 compared to RM1.36 billion in 2025H1, an increase of 7%.
  • Net impairment charges were higher at RM96.2 million, mainly due to higher overlay provision taken in the SME portfolio, partially offset by higher reversals of provisions in Wholesale Banking and higher recoveries.
  • Annualised Return on Equity (ROE) at 10.1%.
  • Net Loans was up 1.0% from 31 March 2025 financial year end.
  • Customer deposits was slightly down from 31 March 2025 but up 2.7% from 30/9/24.
  • Gross Impaired Loans ratio (GIL) deteriorated to 1.75% from 1.17% in FY2026Q1 due to higher GIL in Business Banking under the property and manufacturing sectors.
  • Outstanding management overlays of RM497 million (Source: Public Investment Bank)

CIR is still well short of Ambank’s 40% target under its WT29 (Winning Together) Strategy, while ROE is still below its 11-12% target.

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