Strategy Day: higher dividend roadmap revealed: MYR2bn capital release should support higher dividends from FY28F

研报英文原文证据摘录

Strategy Day: higher dividend roadmap revealed: MYR2bn capital release should support higher dividends from FY28F

Global Markets Research

AMMB Holdings AMMB.KL AMM MK 31 July 2026

EQUITY: BANKS

RatingStrategy Day: higher dividend roadmap revealed Remains Buy

Target priceMYR2bn capital release should support higher dividends Increased from MYR 7.80from FY28F MYR 7.60

Dividend upside Closing31 July 2026price MYR 6.76

AMM hosted its annual Strategy Day, where key management and segment heads

provided a 2-year progress report and future strategy for the bank. We view the dividend Implied upside +15.4%

update as the most important takeaway from the session. Management targets FY27E

dividend of above 40 sen, which is in-line with our current 42 sen forecast. This would Market Cap (USD mn) 5,487.1

place DPS close to the original WT29 target of 45.2 sen (double FY24 base DPS of 22.6 ADT (USD mn) 8.6

sen). Management, therefore, expects to achieve the doubled target before FY29E. The

40 sen commentary appeared stronger than the CFO’s formal base-case framework of a Relative performance chart

60% payout ratio, and suggests that management intends to use some of AMM’s existing

capital surplus to accelerate dividend growth. The upcoming Basel III reforms in Jan-28

could provide a second leg of capital returns from FY28F, in our view. Management

estimates that the reforms will release approximately MYR2.0bn of CET1 capital,

equivalent to around 60 sen per share. AMM intends to return this capital to shareholders,

although management has not finalised the timing or distribution mechanism.

Management appears to prefer a progressively higher cash dividend over a one-off

special dividend or share buyback.

Maintain earnings, raise DPS and TP; reiterate Buy