AMMB’s equity tier capital set to strengthen

TA Research said it does not foresee any substantial impact on the group’s earnings resulting from the disposal of its life insurance business.

PETALING JAYA: The proposed disposal of AMMB Holdings Bhd’s life insurance and takaful businesses is expected to lead to an increase of about 40 basis points (bps) in its common equity tier-1 (CET1) capital, a metric which measures a bank’s financial strength.

To recap, earlier this week, AMMB and MetLife International Holdings LLC proposed to dispose of their life insurance and takaful businesses to Great Eastern, for RM1.12bil.