AMMB Holdings "Strategy Day preview: Focus on capital returns" (Buy) Tan

Research evidence excerpt

AMMB Holdings "Strategy Day preview: Focus on capital returns" (Buy) Tan

Global Research

20 July 2026ab

AMMB Holdings Equities

MalaysiaStrategy Day preview: Focus on capital returns

Banks, Ex-S&L

12-month rating Buy

Focus on capital returns and the path to the 1.1% ROA target

Ahead of AMMB's Strategy Day on 31 July 2026, we preview the two key areas we 12m price target RM7.30

expect investors to focus on. We believe the main emphasis will be on capital returns,

where management is likely to reaffirm its commitment to at least double DPS by FY29

Price (17 Jul 2026) RM6.50

from FY24 levels, with potential upside beyond current guidance in our view. We think

the debate will also increasingly shift from whether AMMB can double DPS to whether it RIC: AMMB.KL BBG: AMM MK

can return more capital than currently guided, an outcome we believe is not yet

Trading data and key metrics

reflected in investor expectations. Separately, while management remains committed to

52-wk range RM6.83-5.05

its 1.1% ROA target, investors will likely be looking for a more credible path to achieving

the final few bps improvement, particularly given slowing NIM momentum and limited Market cap. RM21.5b/US$5.25b

progress on the CIR target. Shares o/s 3,307m (ORD)

Free float 58%

Avg. daily volume ('000) 4,986

We maintain our Buy rating and RM7.30 target price. At consensus 0.9x forward P/B and

5.9% forward dividend yield, we continue to see scope for further rerating as dividends Avg. daily value (m) RM32.1

surprise positively. AMMB remains our preferred mid-sized Malaysian bank. Common s/h equity (03/27E) RM22.6b

P/BV (03/27E) 1.0x

1) Capital returns: Potential for higher dividends Tier 1 ratio 15%

Under the WT29 strategy, AMMB has guided for a doubling of DPS by FY29 from EPS (UBS, diluted) (RM)