AMMB strengthens processes to meet regulatory standards

In a statement, AMMB said it has decided to resolve these historical matters to allow the group to focus fully on its business.

KUALA LUMPUR: AMMB Holdings Bhd has strengthened and enhanced its processes to meet with the current regulatory standards.

This is in reference to the group’s global settlement with the Finance Ministry (MoF) in relation to the review by the relevant authorities of historical transactions by 1Malaysia Development Bhd (1MDB) and its related entities.

In a statement, AMMB said it has decided to resolve these historical matters to allow the group to focus fully on its business.

In this respect, the group has to date reached an agreement with the MoF for a sum of RM2.83bil to be paid towards the full and final settlement in relation to all these historical matters.

Undoubtedly, the settlement will have a material impact on the group’s financial year results for the period ending March 31,2021.

It said a RM2.83bil provision will be reflected in the group’s fourth quarter of financial year 2021 results.

“Consequently, we will not be proposing any final dividends for the year ending March 31,2021, ” it added.

However, AMMB Group maintained that it remains financially resilient and has sufficient financial resources to absorb the settlement without having to raise additional equity capital.

As at Dec 31,2020, the estimated proforma impact to Core Equity Tier-1 (CET1) and Total Capital Ratio (TCR) ratio is estimated to be reduced from13.52% to 11.01% and 16.39% to 13.88%, respectively, after the proposed provision for the global settlement.

The group also remained highly liquid, with liquidity coverage ratio of 155.8% and net stable funding ratio for all operating entities above 100%.

However, the group plans to raise Tier-2 debt capital to increase total capital available for ongoing working capital purposes.

“As part of the global settlement, we will continue, as we have for the past five years, to strengthen our fundamentals particularly in terms of corporate governance by continuing to improve our systems and processes to strengthen due diligence, ” it said.

Furthermore, the settlement of the legacy matters will enable the the group to focus on executing strategies for its business without any distractions.

The group is also committed to ensure that it continues to deliver value to shareholders, stakeholders and customers.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

AmBank , regulatory standards , 1MDB , resilient ,


Next In Business News

Moody's: 5G adoption in Apax region will be uneven
Genting's Kok Thay 'super confident’ on US gambling business
IOI Corp says to assist if US probes alleged forced labour
China's ban forces some bitcoin miners to flee overseas, others sell out
FBM KLCI bounces higher after two-day decline
Toshiba board chairman fails to win reappointment
Bursa gives CCB until Oct 27 to meet public spread, shares slip
MICG: Regrettable for listed company to file suit against external auditor
OM trading at big premium against shares on ASX
Ringgit extends gains on rising crude prices, improved risk appetite

Stories You'll Enjoy