PETALING JAYA: AMMB Holdings Bhd
’s (AmBank) outlook for the rest of the year remains positive despite the macroeconomic headwinds, say analysts.
Kenanga Research said the bank’s absolute dividend payouts remain on track and expects earnings to grow, backed by a continued focus on targeted segments.
“Asset quality appears manageable with potentially improved credit costs in the coming year,” it added.
Furthermore, the bank delivered on its financial year ended March 31, 2026 (FY26) guidance by achieving a single-digit loan growth, stable net interest margin (NIM) and credit cost of about 20 basis points.
Kenanga Research has maintained an “outperform” call on the bank with a target price (TP) of RM7.45, adding that its aspirational payout of 45 sen would translate to a yield of 6.8%.
RHB Research said AmBank’s management had reaffirmed that a mid-teens dividend per share growth can be sustained this year.
The research house said this significantly outpaces earnings per share growth and provides investors with strong dividend visibility and attractive yields.
With that, RHB Research said it will raise the TP to RM7.30 from RM7 previously, as well as increase its FY27 to FY28 profit after tax and minority interest by 3% and 2% respectively.
UOB Kay Hian (UOBKH) Research pointed out the bank’s fourth quarter ended March 31, 2026 results were ahead of expectations, representing 103% and 100% of full-year estimates respectively.
“The positive variance arose primarily from enhanced NIM coming in better than our minus two bps compression expectation.
Its FY26 earnings rose 5% yearly to RM2.1bil, supported by a 5% increase in income as net interest income grew 4% on 6% loan growth,” UOBKH Research further said.
