AMMB Holdings (AMM MK) (Buy) - Raising payout to be a key lever for ROE expansion targets

研报英文原文证据摘录

AMMB Holdings (AMM MK) (Buy) - Raising payout to be a key lever for ROE expansion targets

Global Markets Research

AMMB Holdings AMMB.KL AMM MK 28 May 2026

EQUITY: BANKS

Raising payout to be a key lever for ROE expansion targets Rating Up from Neutral Buy

Target price

Upgrade to Buy from Neutral; raise TP to MYR7.60 Increased from MYR 7.60 MYR 6.80

4Q26 results slightly below ours/in-line with Bloomberg consensus estimates: AMM Closing price MYR 6.60 28 May 2026reported 4Q26 (Jan-Mar 2026) normalized net income of MYR520mn, up 1% y-y but

down 2% q-q, and its FY26 net income formed 98%/100% of ours/consensus estimates.

Implied upsideOverall, this concludes AMM’s third consecutive year of 10.0% ROE, with dividend payout +15.2%

rising to 55% (vs 50% in FY25). Aside from dividends, we liked the positive NIM

Market Cap (USD mn) 5,502.8

momentum, good loan and deposit growth, and higher NOII (albeit NOII was helped by ADT (USD mn) 12.4

trading gains as well). The lower credit cost was also positive, although the GIL ratio rose

bringing loan loss coverage down to 68% in 4Q26. Relative performance chart

Implicit FY27E guidance: Similar to last year, AMM did not explicitly provide FY27E

targets. However, based on management commentary, we imply the following (details

inside): 1) loan growth of at least 4-4.5% y-y overall, with Business Banking appetite being

cautious; 2) credit costs potentially lower than FY26 levels of 21bp, but hinting at risks to this

due to energy price/supply shocks and risk of emerging stress, 3) mid-teens DPS growth

target to improve leverage and ROE; 4) neutral JAWS; 5) on PATAMI, it sees the

consensus implied quarterly net income run-rate of MYR535-540mn in FY27E as slightly

difficult.