CGS International
Asia’s Global Investment House
Banks Malaysia | August 18, 2025
LSEG ESG Combined Score
AMMB Holdings
Expecting NIM downturn in 2QFY26F
ADD (no change)
Consensus ratings*: Buy 11 Hold 6 Sell 1
| Current price: | RM5.51 |
| Target price: | RM6.65 |
| Previous target: | RM6.65 |
| Up/downside: | 20.7% |
| CGSI/Consensus: | 10.9% |
| Reuters: | AMMB.KL |
| Bloomberg: | AMM MK |
| Market cap: | US$4,328m RM18,229m |
| Average daily turnover: | US$7.69m RM32.63m |
| Current shares o/s: | 3,308m |
| Free float: | 75.7% |
*Source: Bloomberg
Key changes in this note
- No change.
Price performance
| 1M | 3M | 12M | |
|---|---|---|---|
| Absolute (%) | 7.0 | 0.2 | 18.2 |
| Relative (%) | 3.7 | 0.0 | 20.5 |
Source: Bloomberg
Major shareholders
| % held | |
|---|---|
| EPF | 12.5 |
| Amcorp | 11.8 |
| Kumpulan Wang Persaran | 3.2 |
Expecting NIM downturn in 2QFY26F
- AMMB’s 1QFY3/26 net profit was within expectations, accounting for 25-26% of our full-year forecast and Bloomberg consensus estimates.
- NIM expanded by 5bp qoq in 1QFY26 (thanks to SRR cut) but the trend could be reversed in 2QFY26 (due to the OPR cut).
- Reiterate Add, given AMMB’s attractive valuation of 8.1x CY26F P/E (vs. the sector’s 9.5x) and potential writeback in management overlay.
1QFY3/26 net profit within expectations
AMMB Holdings’ 1QFY3/26 net profit was within expectations, accounting for 25.1% of our full-year forecast and 25.7% of Bloomberg consensus estimates. The group’s 1QFY26 net profit rose by 3.2% yoy, underpinned by 9.9% yoy increase in 1QFY26 operating revenue (healthy growth of 6.7% yoy in net interest income and 8% yoy in non-interest income).
Anticipating a downturn in NIM in 2QFY26F
AMMB’s net interest margin (NIM) expanded by 5bp qoq to 2.01% in 1QFY26, better than our expectation of 1-2bp qoq expansion (or even flattish qoq) for most banks. This was aided by the cut in statutory reserve requirement (SRR) for the banking industry by Bank Negara Malaysia (BNM) effective 16 May 2025, in our view. Nonetheless, the NIM could contract qoq in 2QFY26F, as loans are repriced downward after the cut in overnight policy rate (OPR) on 9 Jul 2025, while there is a lag in the downward reduction in the rates for fixed deposits (FDs). However, we expect NIM to gradually improve in 3QFY26F and 4QFY26F with the gradual downward repricing of FDs upon maturity.
Non-interest income supported by robust investment income
1QFY26 non-interest income was lifted by 45.5% yoy jump in investment income while the fee income dwindled by 11.5% yoy, mainly due to lower capital market-related income. These trends were within our expectation.
Expecting qoq decline in 2QFY26F net profit
We expect a 3-7% qoq drop in AMMB’s net profit to RM480m-500m in 2QFY26 due to the potential qoq NIM contraction arising from the negative impact from the timing difference for the repricing of loans and FDs following the cut in OPR. We think that AMMB’s 2QFY26F net profit would be stable or decline up to 4% yoy (vs. RM500.2m in 2QFY25).
Reiterate Add on AMMB
We reaffirm our Add rating on AMMB, premised on the potential re-rating catalysts from the write-backs in management overlay and increase in dividend payout ratio. The stock’s CY26F P/E of 8.1x is attractive (vs. sector’s P/E of 9.5x). The potential downside risks would be a material deterioration in loan growth and asset quality. We maintain our FY26-28F EPS forecasts and DDM-based target price of RM6.65 (cost of equity of 10.5%; terminal growth rate of 4%).
Financial Summary
| Mar-24A | Mar-25A | Mar-26F | Mar-27F | Mar-28F | |
|---|---|---|---|---|---|
| Net Interest Income (RMm) | 2,137 | 2,358 | 2,406 | 2,641 | 2,748 |
| Total Non-Interest Income (RMm) | 2,419 | 2,463 | 2,637 | 2,993 | 3,054 |
| Operating Revenue (RMm) | 4,555 | 4,821 | 5,043 | 5,634 | 5,802 |
| Total Provision Charges (RMm) | (823.5) | (214.7) | (301.3) | (345.1) | (368.5) |
| Net Profit (RMm) | 1,868 | 2,001 | 2,058 | 2,310 | 2,419 |
| Core EPS (RM) | 0.56 | 0.60 | 0.62 | 0.70 | 0.73 |
| Core EPS Growth | 9.3% | 7.1% | 2.8% | 12.3% | 4.7% |
| FD Core P/E (x) | 9.76 | 9.11 | 8.86 | 7.89 | 7.53 |
| DPS (RM) | 0.23 | 0.30 | 0.31 | 0.35 | 0.37 |
| Dividend Yield | 4.10% | 5.48% | 5.64% | 6.34% | 6.64% |
| BVPS (RM) | 5.88 | 6.23 | 6.56 | 6.93 | 7.31 |
| P/BV (x) | 0.94 | 0.88 | 0.84 | 0.79 | 0.75 |
| ROE | 10.0% | 10.0% | 9.7% | 10.3% | 10.3% |
| % Change In Core EPS Estimates | 0% | 0% | 0% | ||
| EPS/Consensus EPS (x) | 1.02 | 1.09 | 1.07 |
SOURCES: CGSI RESEARCH, COMPANY REPORTS
Key highlights from 1QFY3/26 results conference call
AMMB held a virtual conference call with analysts on 18 Aug 2025 following the release of its 1QFY3/26 financial results. The call was hosted by Group CEO Mr. Jamie Ling. The key highlights from the call were its views on the outlook for the Malaysian economy and the banking sector in 2025F.
AMMB’s views on the outlook for the economy and banking sector
AMMB’s views on the 2025F outlook for Malaysia’s economy and banking sector are as follows:
On Malaysia’s economy
- GDP growth of 3.5-4.5% (vs. the projection of 4.2% by our economist)
- Inflation rate between 1.8% and 2.3%
- Unemployment rate of 3.2%
- RM/US$ at RM4.2-4.4
On the Malaysian banking sector
- Loan growth of 5-6% (above our projection of between 4.5% and 5.5%)
- Stable asset quality (in line with our expectations)
- Overnight policy rate of 2.75% (in line with our expectations)
High management overlay
AMMB’s management overlay remained high at RM435m at end-Jun 25, close to the RM439m at end-Mar 25. We estimate that every 10% write-back in the management overlay would increase its FY26F net profit by 1.6%.
Expecting FY26F credit charge-off rate at higher end of its guidance of 15-20bp
AMMB stated that its credit charge-off rate in FY26F would possibly be at the level close to its guidance of 15-20bp. This is lower than the credit charge-off rate of 26bp in 1QFY26, signifying lower average credit charge-off rate in the remaining three quarters of FY26F. We project credit charge-off rate of 21bp for AMMB in FY26F.
Potential downside risks to our call
Potential downside risks to our Add call include: 1) a deterioration in asset quality, 2) a moderation in loan growth, and 3) increased deposit competition in the banking industry, which could increase AMMB’s cost of funds and reduce its net interest margin.
Figure 1: AMMB Holdings – Results comparison for 1QFY3/26
| FYE Mar (RM m) | 1QFY25 | 1QFY26 | yoy % chg | 4QFY25 | qoq % chg | Prev. FY26F | Comments |
|---|---|---|---|---|---|---|---|
| Net interest income | 609.5 | 571.4 | 6.7 | 584.2 | 4.3 | 2,406.3 | In line. Lower interest expense. |
| Non-interest income | 292.7 | 271.0 | 8.0 | 297.9 | (1.7) | 1,191.4 | In line. Strong investment income. |
| Islamic income | 357.8 | 303.8 | 17.8 | 360.4 | (0.7) | 1,445.1 | In line. |
| Total income | 1,260.0 | 1,146.2 | 9.9 | 1,242.5 | 1.4 | 5,042.8 | In line. Driven by strong Islamic banking income. |
| Overhead expenses | (563.9) | (520.6) | 8.3 | (576.4) | (2.2) | (2,300.2) | In line. Above normalised growth of around 5%. |
| Pre-provision profit | 696.1 | 625.6 | 11.3 | 666.1 | 4.5 | 2,742.6 | In line. Wider jaws. |
| Loan loss provisions | (87.1) | (36.4) | 139.3 | (56.0) | 55.5 | (301.3) | Above. A yoy surge. |
| Associates’ contrib | 30.7 | 32.3 | (5.0) | 38.9 | (21.1) | 68.2 | Above. |
| Allowance, writeback etc | 14.6 | 24.2 | (39.7) | 7.2 | 102.8 | 39.9 | Above. |
| Pretax profit | 654.3 | 645.7 | 1.3 | 656.2 | (0.3) | 2,549.4 | In line. 25.7% of CGSI. |
| Tax | (138.3) | (145.5) | (4.9) | (142.1) | (2.7) | (560.9) | In line. |
| Tax rate (%) | 21.1 | 22.5 | 0.0 | 21.7 | 0.0 | 22.0 | In line. |
| Minority interests | 0.2 | 0.0 | 100.0 | (0.2) | 200.0 | 69.3 | Below. |
| Net profit | 516.2 | 500.2 | 3.2 | 513.9 | 0.4 | 2,057.8 | Within CGSI (25.1%) and Bloomberg consensus estimate (25.6%). |
| EPS (sen) | 15.6 | 15.1 | 3.1 | 15.6 | 0.3 | 62.2 |
SOURCES: CGSI RESEARCH, COMPANY REPORTS
Figure 2: Sector comparison
| Company | Bbg Ticker | Recom. | Price (local) | Target Price (local) | Market Cap (US$ m) | Core P/E (x) CY2025F | Core P/E (x) CY2026F | 3-year EPS CAGR (%) | P/BV (x) CY2025F | Recurr. ROE (%) CY2025F | P/PPOPS (x) CY2025F | Div Yield (%) CY2025F |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| DBS Group | DBS SP | Add | 49.90 | 54.90 | 110,453 | 12.6 | 12.5 | 1.6% | 2.06 | 16.2% | 10.3 | 6.1% |
| OCBC | OCBC SP | Hold | 16.90 | 17.20 | 59,243 | 10.3 | 9.9 | 2.5% | 1.29 | 12.6% | 9.0 | 6.2% |
| United Overseas Bank | UOB SP | Hold | 35.34 | 38.30 | 45,769 | 10.5 | 9.1 | 4.7% | 1.15 | 10.8% | 7.5 | 7.0% |
| Singapore average | 11.4 | 10.8 | 2.7% | 1.55 | 13.4% | 9.2 | 6.3% | |||||
| Agricultural Bank of China | 1288 HK | Add | 5.41 | 7.20 | 325,774 | 6.4 | 6.2 | 3.2% | 0.63 | 10.0% | 4.0 | 5.0% |
| Bank of China | 3988 HK | Add | 4.45 | 5.00 | 228,645 | 5.6 | 5.7 | -0.6% | 0.48 | 8.8% | 3.2 | 5.5% |
| Bank of Communications | 3328 HK | Reduce | 6.87 | 4.20 | 85,955 | 5.9 | 6.3 | -3.9% | 0.48 | 8.2% | 3.2 | 5.1% |
| China CITIC Bank | 998 HK | Add | 7.27 | 7.50 | 59,583 | 4.7 | 4.3 | na | 0.47 | 10.4% | 2.3 | 6.0% |
| China Construction Bank | 939 HK | Add | 7.80 | 11.40 | 266,832 | 5.6 | 5.6 | -0.7% | 0.54 | 9.9% | 3.7 | 5.4% |
| China Minsheng Bank | 1988 HK | Reduce | 4.55 | 1.90 | 28,049 | 6.6 | 6.6 | 0.3% | 0.32 | 4.9% | 2.4 | 4.5% |
| ICBC | 1398 HK | Add | 5.96 | 7.20 | 349,594 | 5.5 | 5.5 | 0.3% | 0.50 | 9.3% | 3.6 | 5.6% |
| Hong Kong average | 5.7 | 5.7 | na | 0.52 | 9.3% | 3.5 | 5.4% | |||||
| Bank Central Asia | BBCA IJ | Add | 8,700 | 11,100 | 66,330 | 18.3 | 17.0 | 7.5% | 3.82 | 21.6% | 14.1 | 3.6% |
| Bank Mandiri | BMRI IJ | Add | 4,850 | 6,500 | 27,996 | 8.0 | 7.2 | 7.3% | 1.52 | 19.5% | 4.6 | 7.5% |
| Bank Rakyat Indonesia | BBRI IJ | Add | 4,120 | 4,900 | 38,619 | 10.9 | 9.4 | 5.8% | 1.88 | 17.7% | 5.2 | 7.8% |
| Bank Negara Indonesia | BBNI IJ | Add | 4,370 | 5,500 | 10,080 | 7.6 | 6.8 | 8.0% | 1.03 | 13.5% | 4.6 | 8.6% |
| Bank Tabungan Negara | BBTN IJ | Add | 1,280 | 1,250 | 1,111 | 5.7 | 5.2 | 7.7% | 0.52 | 9.5% | 2.1 | 4.4% |
| Bank Neo Commerce | BBYB IJ | Hold | 330 | 230 | 253 | 31.3 | 18.9 | na | 1.24 | 4.0% | 1.8 | 0.0% |
| Indonesia average | 11.9 | 10.7 | na | 2.12 | 18.3% | 6.9 | 5.7% | |||||
| Affin Bank Berhad | ABANK MK | Add | 2.40 | 2.73 | 1,444 | 11.8 | 10.3 | 11.0% | 0.51 | 4.3% | 9.0 | 3.4% |
| Alliance Bank Malaysia Berhad | ABMB MK | Add | 4.58 | 5.35 | 1,881 | 8.6 | 8.0 | 11.3% | 0.87 | 10.3% | 5.5 | 5.6% |
| AMMB Holdings | AMM MK | Add | 5.51 | 6.65 | 4,328 | 8.9 | 8.1 | 9.1% | 0.85 | 9.6% | 6.7 | 5.6% |
| Bank Islam Malaysia Bhd | BIMB MK | Add | 2.30 | 2.92 | 1,238 | 8.9 | 8.4 | 8.0% | 0.65 | 7.3% | 4.8 | 6.7% |
| CIMB Group Holdings Bhd | CIMB MK | Add | 7.25 | 9.10 | 18,515 | 9.3 | 8.8 | 9.0% | 1.04 | 11.4% | 5.8 | 6.5% |
| Hong Leong Bank | HLBK MK | Add | 19.62 | 30.70 | 10,097 | 8.8 | 8.9 | 6.0% | 1.03 | 11.9% | 11.0 | 4.2% |
| Malayan Banking Bhd | MAY MK | Add | 9.80 | 13.00 | 28,109 | 10.8 | 10.3 | 8.9% | 1.19 | 11.0% | 7.6 | 6.6% |
| Public Bank Bhd | PBK MK | Add | 4.45 | 5.77 | 20,507 | 11.8 | 11.0 | 7.5% | 1.42 | 12.2% | 8.7 | 5.1% |
| RHB Bank Bhd | RHBBANK MK | Add | 6.43 | 7.36 | 6,659 | 8.8 | 7.6 | 10.8% | 0.82 | 9.3% | 6.0 | 6.9% |
| Malaysia average | 10.0 | 9.5 | 8.6% | 1.08 | 10.8% | 7.3 | 5.9% | |||||
| Bangkok Bank | BBL TB | Hold | 153.5 | 148.0 | 9,035 | 6.8 | 7.1 | 0.6% | 0.50 | 7.4% | 3.3 | 5.9% |
| Kasikornbank | KBANK TB | Add | 169.0 | 184.0 | 12,347 | 9.3 | 8.1 | 6.9% | 0.68 | 7.3% | 4.0 | 5.3% |
| Kiatnakin Phatra Bank | KKP TB | Hold | 56.8 | 52.0 | 1,449 | 10.0 | 9.2 | 9.0% | 0.73 | 7.4% | 4.5 | 5.0% |
| Krung Thai Bank | KTB TB | Add | 24.5 | 25.0 | 10,559 | 9.4 | 8.3 | 2.5% | 0.74 | 8.0% | 4.1 | 5.2% |
| Tisco Financial Group | TISCO TB | Hold | 101.0 | 99.0 | 2,494 | 12.4 | 12.4 | 0.3% | 1.84 | 14.7% | 8.1 | 6.8% |
| Thailand average | 8.7 | 8.1 | 3.5% | 0.67 | 7.7% | 4.0 | 5.5% |
SOURCES: CGSI RESEARCH ESTIMATES, BLOOMBERG, COMPANY REPORTS (AS AT 18 AUG 2025)
Figure 3: AMMB Holdings – Quarterly profit and loss statements
| FYE Mar (RM m) | Mar-24 4QFY24 | Jun-24 1QFY25 | Sep-24 2QFY25 | Dec-24 3QFY25 | Mar-25 4QFY25 | Jun-25 1QFY26 | Remarks for 1QFY26 |
|---|---|---|---|---|---|---|---|
| Interest income | 1,515.5 | 1,529.3 | 1,531.7 | 1,565.8 | 1,522.4 | 1,529.6 | |
| Interest expense | (996.8) | (957.9) | (933.1) | (962.1) | (938.2) | (920.1) | |
| Net interest income | 518.7 | 571.4 | 598.6 | 603.7 | 584.2 | 609.5 | |
| Non-interest income | 268.1 | 271.0 | 185.2 | 358.3 | 297.9 | 292.7 | |
| Islamic Banking Income (IBI) | 355.7 | 303.8 | 427.7 | 258.7 | 360.4 | 357.8 | |
| Total income | 1,142.5 | 1,146.2 | 1,211.5 | 1,220.7 | 1,242.5 | 1,260.0 | |
| Overhead expenses | (529.7) | (520.6) | (529.9) | (570.8) | (576.4) | (563.9) | |
| Pre-provision profit | 612.8 | 625.6 | 681.6 | 649.9 | 666.1 | 696.1 | |
| Loan loss provisions | (39.0) | (36.4) | (103.2) | (35.6) | (56.0) | (87.1) | |
| Associates’ contrib | 27.2 | 32.3 | 16.8 | 19.8 | 38.9 | 30.7 | |
| Allowance, writeback etc | 18.7 | 24.2 | 58.3 | (2.2) | 7.2 | 14.6 | |
| Pretax profit | 619.7 | 645.7 | 653.5 | 631.9 | 656.2 | 654.3 | |
| Tax | (143.1) | (145.5) | (152.9) | (145.4) | (142.1) | (138.3) | |
| Tax rate (%) | 23.1 | 22.5 | 23.4 | 23.0 | 21.7 | 21.1 | |
| Minority interests | (0.1) | 0.0 | 0.0 | 0.0 | (0.2) | 0.2 | |
| Net profit | 476.5 | 500.2 | 500.6 | 486.5 | 513.9 | 516.2 | |
| EPS (sen) | 14.4 | 15.1 | 15.1 | 14.7 | 14.3 | 15.6 | |
| yoy chg (%) | |||||||
| Mar-24 4QFY24 | Jun-24 1QFY25 | Sep-24 2QFY25 | Dec-24 3QFY25 | Mar-25 4QFY25 | Jun-25 1QFY26 | ||
| Interest income | 7.0% | 3.5% | -0.9% | 2.1% | 0.5% | 0.0% | |
| Interest expense | 11.4% | 0.1% | -5.2% | -3.4% | -5.9% | -3.9% | |
| Net interest income | -0.6% | 9.8% | 6.8% | 12.4% | 12.6% | 6.7% | Lifted by expansion in net interest margin. |
| Non-interest income | -6.6% | 8.7% | -23.5% | 4.4% | 11.1% | 8.0% | Mainly spurred by 45.4% yoy jump in investment income. |
| Islamic Banking Income | 12.5% | -18.2% | 41.2% | -9.6% | 1.3% | 17.8% | |
| Total income | 1.6% | 0.5% | 9.6% | 4.6% | 8.8% | 9.9% | Driven by robust Islamic banking income growth. |
| Overhead expenses | -4.7% | 2.5% | 7.6% | 9.4% | 8.8% | 8.3% | Above the normalised growth of around 5%. |
| Pre-provision profit | 7.6% | -1.2% | 11.2% | 0.8% | 8.7% | 11.3% | Wider jaws due to strong topline growth. |
| Loan loss provisions (LLP) | -53.8% | -78.1% | 81.4% | -91.8% | 43.6% | 139.3% | A yoy surge. |
| Associates’ contrib | |||||||
| Allowance, writeback etc | -44.3% | -9.4% | 33.1% | -98.8% | -61.5% | -39.7% | |
| Pretax profit | 12.0% | 28.2% | 5.7% | 16528.9% | 5.9% | 1.3% | |
| Tax | 13.8% | 45.1% | 3.2% | -126.9% | -0.7% | -4.9% | |
| Minority interests | -100.0% | -100.0% | |||||
| Net profit | 11.5% | 32.2% | 6.5% | -10.5% | 7.8% | 3.2% | Supported by strong topline expansion. |
| EPS (sen) | 11.4% | 42.1% | 6.6% | -10.3% | -0.9% | 3.4% | |
| Key ratios (%) | |||||||
| Mar-24 4QFY24 | Jun-24 1QFY25 | Sep-24 2QFY25 | Dec-24 3QFY25 | Mar-25 4QFY25 | Jun-25 1QFY26 | ||
| Annualised ROAE | 10.2% | 10.4% | 10.4% | 9.9% | 10.3% | 10.2% | Largely stable yoy. |
| Annualised ROAA | 1.0% | 1.0% | 1.0% | 1.0% | 1.0% | 1.1% | |
| Non-interest income ratio | 23.5% | 23.6% | 15.3% | 29.4% | 24.0% | 23.2% | Largely stable yoy. |
| IBI over total revenue | 31.1% | 26.5% | 35.3% | 21.2% | 29.0% | 28.4% | |
| Cost-to-income ratio | 46.4% | 45.4% | 43.7% | 46.8% | 46.4% | 44.8% | Yoy improvement due to strong topline growth. |
| Annualised credit charge-off rate | 0.12% | 0.11% | 0.32% | 0.11% | 0.17% | 0.26% | A yoy and qoq increase. |
| Annualised yield on earnings asset | 3.28% | 3.30% | 3.29% | 3.35% | 3.24% | 3.25% | |
| Annualised average cost of fund | 2.33% | 2.24% | 2.18% | 2.24% | 2.18% | 2.15% | |
| Annualised net interest margin | 1.79% | 1.89% | 1.96% | 1.96% | 1.96% | 2.01% | A expansion of 5bp qoq and 12bp yoy. |
SOURCES: CGSI RESEARCH, COMPANY REPORTS
Figure 4: AMMB Holdings – Quarterly balance sheet
| FYE Mar (RM m) | Mar-24 | Jun-24 | Sep-24 | Dec-24 | Mar-25 | Jun-25 | Remarks for Jun 25 |
|---|---|---|---|---|---|---|---|
| Cash and short-term funds | 6,493.1 | 7,547.7 | 6,419.1 | 5,128.8 | 6,759.1 | 6,743.7 | |
| Securities purchased under resale agreement | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Deposits with other FI’s | 0.0 | 47.2 | 288.3 | 0.0 | 0.0 | 0.0 | |
| Securities held-for-trading | 10,004.9 | 9,622.6 | 7,340.9 | 8,408.6 | 7,818.4 | 8,073.2 | |
| Securities available-for-sale | 26,391.2 | 27,331.1 | 27,175.8 | 26,315.4 | 25,447.8 | 27,104.5 | |
| Securities held-to-maturity | 11,320.9 | 11,320.9 | 13,429.6 | 13,518.6 | 12,041.3 | 10,320.7 | |
| Loans, advances and financing | 132,102.1 | 130,660.2 | 132,549.8 | 135,112.0 | 137,130.1 | 136,343.1 | +4.3% |
| Other assets | 5,547.4 | 4,677.1 | 4,775.3 | 3,942.0 | 4,721.9 | 3,969.6 | |
| Goodwill on consolidation | 431.3 | 430.5 | 438.1 | 439.7 | 458.7 | 458.5 | |
| Statutory deposits | 2,612.7 | 2,785.5 | 2,759.9 | 2,816.0 | 2,774.4 | 1,399.1 | |
| Deferred tax assets | 275.8 | 225.1 | 224.7 | 262.6 | 271.1 | 190.0 | |
| Investment in associates | 1,391.1 | 1,408.1 | 1,425.3 | 1,478.9 | 1,478.9 | 1,428.7 | |
| Property and equipment | 144.7 | 140.7 | 136.3 | 143.5 | 141.9 | 150.3 | |
| Life fund assets | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| TOTAL ASSETS | 196,763.8 | 196,179.7 | 196,945.9 | 197,512.5 | 199,043.6 | 196,181.4 | |
| Deposits from customers | 142,381.2 | 135,479.4 | 136,313.6 | 138,415.7 | 141,547.1 | 137,987.2 | +1.9% |
| Deposits from other FI’s | 8,901.9 | 7,902.3 | 8,676.9 | 7,833.3 | 7,579.3 | 6,941.3 | |
| Obligations on repurchase agreement securities | 6,328.3 | 11,251.3 | 8,083.6 | 8,962.1 | 5,951.5 | 4,807.0 | |
| Bill and acceptances payable | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Recourse obligations on loans sold to Cagamas | 7,480.0 | 6,680.0 | 6,980.1 | 6,655.1 | 6,555.1 | 7,255.1 | |
| Other liabilities | 5,385.5 | 4,808.3 | 6,904.1 | 4,949.2 | 4,851.1 | 5,989.8 | |
| Term loans | 2,450.0 | 5,649.6 | 5,621.5 | 6,230.5 | 7,542.8 | 8,241.4 | |
| Subordinated certificates of deposits | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Subordinated term loan/Hybrid Capital | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Other borrowings & hybrid Tier-1 | 4,395.0 | 4,395.0 | 4,395.0 | 4,395.0 | 4,395.0 | 4,395.0 | |
| Converting preference shares | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Unsecured exchangeable bonds | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Life fund liabilities | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Life policyholder funds | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| TOTAL LIABILITIES | 177,321.9 | 176,165.9 | 176,974.8 | 177,440.9 | 178,421.9 | 175,616.8 | |
| Share capital | 6,376.2 | 6,376.2 | 6,376.2 | 6,376.2 | 6,376.2 | 6,376.2 | |
| Reserves | 13,064.6 | 13,636.6 | 13,593.8 | 13,694.6 | 14,244.6 | 14,187.5 | |
| Proposed dividends | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Treasury shares | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Shareholders’ funds | 19,440.8 | 20,012.8 | 19,970.0 | 20,070.8 | 20,620.8 | 20,563.7 | |
| Minority Interest | 1.1 | 1.0 | 1.1 | 0.8 | 0.9 | 0.8 | |
| TOTAL LIABILITIES AND SHF | 196,763.8 | 196,179.7 | 196,945.9 | 197,512.5 | 199,043.6 | 196,181.3 |
SOURCES: CGSI RESEARCH, COMPANY REPORTS
Figure 5: AMMB Holdings – breakdown of loans
| FYE Mar (RM m) | 4Q24 | 1Q25 | 2Q25 | 3Q25 | 4Q25 | 1Q26 | Remarks for end-Jun 25 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| As at end | Mar-24 | Jun-24 | Sep-24 | Dec-24 | Mar-25 | Jun-25 | |||||||
| Agriculture | 2,849.3 | 2,572.9 | 2,503.2 | 2,450.3 | 2,525.9 | 2,562.6 | |||||||
| Mining and quarrying | 2,246.0 | 1,484.8 | 1,681.6 | 1,807.5 | 2,025.4 | 1,825.8 | |||||||
| Manufacturing | 15,629.9 | 15,183.7 | 14,867.9 | 15,993.7 | 17,052.9 | 16,835.4 | |||||||
| Utility | 1,818.0 | 1,900.6 | 1,935.2 | 2,592.6 | 2,584.9 | 2,591.5 | |||||||
| Construction | 4,828.7 | 5,035.1 | 4,935.9 | 4,782.0 | 4,753.3 | 4,714.1 | |||||||
| Real Estate | 8,877.8 | 8,972.9 | 10,740.8 | 11,214.7 | 12,081.9 | 12,296.5 | |||||||
| Residential mortgages | 44,591.8 | 45,058.0 | 45,424.1 | 45,686.2 | 45,921.2 | 46,163.7 | |||||||
| Non-residential mortgages | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |||||||
| General commerce | 13,096.0 | 13,153.5 | 13,618.1 | 13,696.0 | 14,143.9 | 14,056.3 | |||||||
| Transport, storage and communication. | 4,495.4 | 4,640.3 | 5,006.1 | 5,013.2 | 4,756.8 | 4,249.7 | |||||||
| Finance | 4,955.8 | 4,670.4 | 4,953.1 | 5,306.4 | 5,297.0 | 5,879.2 | |||||||
| Auto loans | 13,261.0 | 12,818.0 | 12,290.3 | 11,763.8 | 11,266.3 | 10,937.5 | |||||||
| Consumption credit | 12,851.3 | 12,463.5 | 12,127.4 | 12,051.4 | 11,579.6 | 11,610.1 | |||||||
| Others | 4,629.3 | 4,718.0 | 4,406.9 | 4,701.6 | 4,894.3 | 4,458.1 | |||||||
| TOTAL | 134,130.3 | 132,671.7 | 134,490.6 | 137,059.4 | 138,883.4 | 138,180.5 | |||||||
| Sectoral breakdown of loans (%) | |||||||||||||
| Agriculture | 2.1% | 1.9% | 1.9% | 1.8% | 1.8% | 1.9% | |||||||
| Mining and quarrying | 1.7% | 1.1% | 1.3% | 1.3% | 1.5% | 1.3% | |||||||
| Manufacturing | 11.7% | 11.4% | 11.1% | 11.7% | 12.3% | 12.2% | |||||||
| Utility | 1.4% | 1.4% | 1.4% | 1.9% | 1.9% | 1.9% | |||||||
| Construction | 3.6% | 3.8% | 3.7% | 3.5% | 3.4% | 3.4% | |||||||
| Real Estate | 6.6% | 6.8% | 8.0% | 8.2% | 8.7% | 8.9% | |||||||
| Residential mortgages | 33.2% | 34.0% | 33.8% | 33.3% | 33.1% | 33.4% | Biggest loan segment. | ||||||
| Non-residential mortgages | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | |||||||
| General commerce | 9.8% | 9.9% | 10.1% | 10.0% | 10.2% | 10.2% | |||||||
| Transport, storage and communication. | 3.4% | 3.5% | 3.7% | 3.7% | 3.4% | 3.1% | |||||||
| Finance | 3.7% | 3.5% | 3.7% | 3.9% | 3.8% | 4.3% | |||||||
| Auto loans | 9.9% | 9.7% | 9.1% | 8.6% | 8.1% | 7.9% | Shrinking contribution due to deliberate reduction in exposure to this segment. | ||||||
| Consumption credit | 9.6% | 9.4% | 9.0% | 8.8% | 8.3% | 8.4% | |||||||
| Others | 3.5% | 3.6% | 3.3% | 3.4% | 3.5% | 3.2% | |||||||
| TOTAL | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | |||||||
| Loans (RM ‘m) | |||||||||||||
| yoy loan growth | 4Q24 | 1Q25 | 2Q25 | 3Q25 | 4Q25 | 1Q26 | |||||||
| Agriculture | -6.8% | -12.8% | -16.1% | -14.1% | -11.4% | -0.4% | |||||||
| Mining and quarrying | 3.7% | -32.0% | -20.5% | -28.9% | -9.8% | 23.0% | |||||||
| Manufacturing | -0.9% | 5.7% | -2.1% | 11.5% | 9.1% | 10.9% | Healthy growth of 9-12% yoy in past three quarters. | ||||||
| Utility | 19.4% | 37.3% | 31.6% | 72.2% | 42.2% | 36.4% | |||||||
| Construction | 8.0% | 11.0% | 11.3% | 6.3% | -1.6% | -6.4% | |||||||
| Real Estate | 14.7% | 18.0% | 37.5% | 41.3% | 36.1% | 37.0% | |||||||
| Residential mortgages | 6.0% | 5.6% | 4.4% | 3.7% | 3.0% | 2.5% | Less than half of the industry’s growth of 6.4%. | ||||||
| Non-residential mortgages | |||||||||||||
| General commerce | 7.7% | 7.4% | 8.8% | 1.0% | 8.0% | 6.9% | Healthy growth of 7-8% yoy in the past two quarters. | ||||||
| Transport, storage and communication. | -13.3% | -11.4% | -5.3% | 27.8% | 5.8% | -8.4% | |||||||
| Finance | -3.2% | -0.5% | 10.0% | 13.6% | 6.9% | 25.9% | |||||||
| Auto loans | 0.8% | -6.0% | -10.8% | -13.3% | -15.0% | -14.7% | Yoy contractions in past five quarters. | ||||||
| Consumption credit | -7.0% | -8.1% | -9.1% | -10.8% | -9.9% | -6.8% | |||||||
| Others | 15.7% | 20.8% | 12.9% | 8.1% | 5.7% | -5.5% | |||||||
| TOTAL | 3.0% | 2.9% | 2.8% | 4.4% | 3.5% | 4.2% | Below industry’s growth of 5.1% yoy. | ||||||
SOURCES: CGSI RESEARCH, COMPANY REPORTS
ESG in a nutshell
From an ESG perspective, AMMB Holdings’ focus areas are: 1) becoming the bank and partner of choice for its clients in their sustainability and green transition journey, 2) upholding the group’s promotion of sustainable finance, focusing on green energy, electric mobility (infrastructure for electric vehicles), sustainable farming and forest conservation, and 3) delivering innovative banking solutions that promote sustainability and financing inclusiveness to the unserved and underserved segments, including business start-ups, e-commerce and micro-SMEs. It received an LSEG ESG combined grade of B+ in FY24.
LSEG ESG Scores
| ESG | B+ ESG Grade |
A+ ESG Controversies Grade |
B+ ESG Combined Grade |
C+ ESG Environment Pillar Grade |
A- ESG Social Pillar Grade |
A- ESG Governance Pillar Grade |
|---|---|---|---|---|---|---|
Keep your eye on
AMMB mobilised RM14.6bn in sustainable financing in FY3/25, representing a yoy growth of 10.5%. This included RM8.5bn for sustainable investments, RM2.6bn for sustainable capital market issuances facilitated, RM2.4bn for green financing and RM1.1bn for affordable and low-income financing.
Implications
In our view, AMMB’s sustainable financing would expand swiftly in the next next few years, underpinned by the rising credit demand for such financing amidst the increased awareness of the importance of ESG in the business community and the society, the implementation of various ESG projects by companies and higher sales of ESG-supporting products (such as electric vehicles and green buildings).
ESG highlights
In FY25, AMMB consumed 71.1 gigajoules (GJ) of electricity per US$ m net income, a 29.4% decrease since FY20. AMMB also consumed 86.2 m³ per US$ m of water in FY25, a drop of 33.4% since FY22.
The total greenhouse gas (GHG) emission for AMMB was at 28,866 tCO2e in FY25, with the breakdown of 62 tCO2e for Scope 1, 16,375 tCO2e for Scope 2 and 12,429 tCO2e for Scope 3.
Implications
These reflect the success of AMMB in reducing its consumption of electricity and water. One of the initiatives for AMMB to further reduce its electricity consumption would be the installation of solar panels in its branches (those are in shophouses), in our view.
Trends
AMMB reported no fines or penalties related to cybersecurity since FY23.
Implications
This reflects positively on the attributes of “S” (social; the protection of the personal data and money of its customers) and “G” (governance; the systems put in place to fend off the cyberattacks) for the ESG evaluation for AMMB, in our view.
SOURCES: CGSI RESEARCH, LSEG
BY THE NUMBERS
Profit & Loss
| (RMm) | Mar-24A | Mar-25A | Mar-26F | Mar-27F | Mar-28F |
|---|---|---|---|---|---|
| Net Interest Income | 2,137 | 2,358 | 2,406 | 2,641 | 2,748 |
| Total Non-Interest Income | 2,419 | 2,463 | 2,637 | 2,993 | 3,054 |
| Operating Revenue | 4,555 | 4,821 | 5,043 | 5,634 | 5,802 |
| Total Non-Interest Expenses | (2,052) | (2,198) | (2,300) | (2,408) | (2,520) |
| Pre-provision Operating Profit | 2,504 | 2,623 | 2,743 | 3,226 | 3,282 |
| Total Provision Charges | (824) | (215) | (301) | (345) | (368) |
| Operating Profit After Provisions | 1,680 | 2,409 | 2,441 | 2,881 | 2,914 |
| Pretax Income/(Loss) from Assoc. | 40 | 108 | 68 | 72 | 75 |
| Operating EBIT (incl Associates) | 1,720 | 2,516 | 2,510 | 2,953 | 2,988 |
| Non-Operating Income/(Expense) | 25 | 71 | 40 | (91) | 9 |
| Profit Before Tax (pre-EI) | 1,745 | 2,587 | 2,549 | 2,862 | 2,997 |
| Exceptional Items | 0 | 0 | 0 | 0 | 0 |
| Pre-tax Profit | 1,745 | 2,587 | 2,549 | 2,862 | 2,997 |
| Taxation | 148 | (586) | (561) | (630) | (659) |
| Consolidation Adjustments & Others | 0 | 0 | 0 | 0 | 0 |
| Exceptional Income – post-tax | 0 | 0 | 0 | 0 | 0 |
| Profit After Tax | 1,894 | 2,001 | 1,989 | 2,233 | 2,338 |
| Minority Interests | (25) | (0) | 69 | 78 | 81 |
| Pref. & Special Div | 0 | 0 | 0 | 0 | 0 |
| FX And Other Adj. | 0 | 0 | 0 | 0 | 0 |
| Net Profit | 1,868 | 2,001 | 2,058 | 2,310 | 2,419 |
| Recurring Net Profit | 1,868 | 2,001 | 2,058 | 2,310 | 2,419 |
Balance Sheet Employment
| Mar-24A | Mar-25A | Mar-26F | Mar-27F | Mar-28F | |
|---|---|---|---|---|---|
| Gross Loans/Cust Deposits | 94.2% | 98.1% | 94.8% | 91.9% | 89.3% |
| Avg Loans/Avg Deposits | 96.9% | 96.2% | 96.4% | 93.3% | 90.6% |
| Avg Liquid Assets/Avg Assets | 29.1% | 26.9% | 27.7% | 30.1% | 31.7% |
| Avg Liquid Assets/Avg IEAs | 30.6% | 28.3% | 29.0% | 31.3% | 32.9% |
| Net Cust Loans/Assets | 67.1% | 68.9% | 66.8% | 65.3% | 64.0% |
| Net Cust Loans/Broad Deposits | 83.8% | 88.4% | 85.6% | 83.0% | 80.7% |
| Equity & Provns/Gross Cust Loans | 16.0% | 16.1% | 16.1% | 16.2% | 16.3% |
| Asset Risk Weighting | 63.3% | 57.9% | 57.3% | 57.6% | 57.5% |
| Provision Charge/Avg Cust Loans | 0% | 0% | 0% | 0% | 0% |
| Provision Charge/Avg Assets | 0% | 0% | 0% | 0% | 0% |
| Total Write Offs/Average Assets | 0.479% | 0.396% | 0.300% | 0.244% | 0.249% |
SOURCES: CGSI RESEARCH, COMPANY REPORTS
BY THE NUMBERS… cont’d
Balance Sheet
| (RMm) | Mar-24A | Mar-25A | Mar-26F | Mar-27F | Mar-28F |
|---|---|---|---|---|---|
| Total Gross Loans | 134,130 | 138,883 | 145,879 | 152,954 | 160,385 |
| Liquid Assets & Invst. (Current) | 47,717 | 45,308 | 46,367 | 53,552 | 60,125 |
| Other Int. Earning Assets | 0 | 0 | 0 | 0 | 0 |
| Total Gross Int. Earning Assets | 181,847 | 184,191 | 192,245 | 206,506 | 220,511 |
| Total Provisions/Loan Loss Reserve | (2,028) | (1,753) | (1,740) | (1,838) | (1,909) |
| Total Net Interest Earning Assets | 179,819 | 182,438 | 190,506 | 204,668 | 218,601 |
| Intangible Assets | 431 | 459 | 459 | 459 | 459 |
| Other Non-Interest Earning Assets | 10,020 | 9,388 | 7,998 | 8,186 | 8,409 |
| Total Non-Interest Earning Assets | 10,452 | 9,847 | 8,457 | 8,645 | 8,867 |
| Cash And Marketable Securities | 6,493 | 6,759 | 16,261 | 17,852 | 19,802 |
| Long-term Investments | 0 | 0 | 0 | 0 | 0 |
| Total Assets | 196,764 | 199,044 | 215,223 | 231,165 | 247,270 |
| Customer Interest-Bearing Liabilities | 142,395 | 141,560 | 153,560 | 166,161 | 179,424 |
| Bank Deposits | 15,230 | 13,531 | 14,518 | 15,562 | 16,667 |
| Interest Bearing Liabilities: Others | 6,845 | 11,938 | 10,240 | 10,806 | 10,617 |
| Total Interest-Bearing Liabilities | 164,471 | 167,028 | 178,318 | 192,529 | 206,708 |
| Bank’s Liabilities Under Acceptances | 0 | 0 | 0 | 0 | 0 |
| Total Non-Interest Bearing Liabilities | 12,851 | 11,394 | 15,200 | 15,695 | 16,380 |
| Total Liabilities | 177,322 | 178,422 | 193,518 | 208,223 | 223,088 |
| Shareholders’ Equity | 19,441 | 20,621 | 21,704 | 22,941 | 24,181 |
| Minority Interests | 1 | 1 | 1 | 1 | 1 |
| Total Equity | 19,442 | 20,622 | 21,705 | 22,942 | 24,182 |
Key Ratios
| Mar-24A | Mar-25A | Mar-26F | Mar-27F | Mar-28F | |
|---|---|---|---|---|---|
| Total Income Growth | 0.4% | 5.8% | 4.6% | 11.7% | 3.0% |
| Operating Profit Growth | (1.4%) | 4.8% | 4.5% | 17.6% | 1.7% |
| Pretax Profit Growth | (19.3%) | 48.3% | (1.5%) | 12.3% | 4.7% |
| Net Interest To Total Income | 46.9% | 48.9% | 47.7% | 46.9% | 47.4% |
| Cost Of Funds | 2.39% | 2.29% | 2.38% | 2.38% | 2.35% |
| Return On Interest Earning Assets | 3.24% | 3.28% | 3.30% | 3.28% | 3.23% |
| Net Interest Spread | 0.85% | 0.99% | 0.91% | 0.91% | 0.88% |
| Net Interest Margin (Avg Deposits) | 1.57% | 1.66% | 1.63% | 1.65% | 1.59% |
| Net Interest Margin (Avg RWA) | 1.72% | 1.97% | 2.02% | 2.06% | 2.00% |
| Provisions to Pre Prov. Operating Profit | 32.9% | 8.2% | 11.0% | 10.7% | 11.2% |
| Interest Return On Average Assets | 1.08% | 1.19% | 1.16% | 1.18% | 1.15% |
| Effective Tax Rate | 0.0% | 22.6% | 22.0% | 22.0% | 22.0% |
| Net Dividend Payout Ratio | 40.0% | 49.9% | 50.0% | 50.0% | 50.0% |
| Return On Average Assets | 0.95% | 1.01% | 0.99% | 1.04% | 1.01% |
Key Drivers
| Mar-24A | Mar-25A | Mar-26F | Mar-27F | Mar-28F | |
|---|---|---|---|---|---|
| Loan growth (%) | 3.0% | 3.5% | 4.8% | 4.9% | 4.9% |
| Gross impaired loan ratio (%) | 1.7% | 1.5% | 1.7% | 1.8% | 1.9% |
| Loan loss coverage (%) | 97.8% | 68.3% | 61.8% | 55.3% | 50.9% |
| Cost-to-income ratio (%) | 45.0% | 45.6% | 45.6% | 42.7% | 43.4% |
| Non-interest income ratio (%) | 24.2% | 23.1% | 23.6% | 25.7% | 24.1% |
| Common equity Tier-1 capital ratio (%) | 13.7% | 15.4% | 14.3% | 14.0% | 13.9% |
| Stage-1 ECL coverage (%) | 15.0% | 15.2% | 13.4% | 11.7% | 10.9% |
| Stage-2 ECL coverage (%) | 46.0% | 43.0% | 36.1% | 31.1% | 27.9% |
| Stage-3 ECL coverage (%) | 29.7% | 24.0% | 21.7% | 23.6% | 24.1% |
| Total provision over loans (%) | 1.5% | 1.3% | 1.2% | 1.2% | 1.2% |
| Return on equity (%) | 10.0% | 10.0% | 9.7% | 10.3% | 10.3% |
| Return on asset (%) | 0.9% | 1.0% | 1.0% | 1.0% | 1.0% |
SOURCES: CGSI RESEARCH, COMPANY REPORTS
Recommendations & Target Price
Distribution of stock ratings and investment banking clients for quarter ended on 30 June 2025
561 companies under coverage for quarter ended on 30 June 2025
| Rating Distribution (%) | Investment Banking clients (%) | |
|---|---|---|
| Add | 70.6% | 1.1% |
| Hold | 20.5% | 0.5% |
| Reduce | 8.9% | 0.5% |
Recommendation Framework
Stock Ratings
- Definition:
- Add
- The stock’s total return is expected to exceed 10% over the next 12 months.
- Hold
- The stock’s total return is expected to be between 0% and positive 10% over the next 12 months.
- Reduce
- The stock’s total return is expected to fall below 0% or more over the next 12 months.
- Not Rated
- The total expected return of a stock is defined as the sum of the: (i) percentage difference between the target price and the current price and (ii) the forward net dividend yields of the stock. Stock price targets have an investment horizon of 12 months.
Sector Ratings
- Definition:
- Overweight
- An Overweight rating means stocks in the sector have, on a market cap-weighted basis, a positive absolute recommendation.
- Neutral
- A Neutral rating means stocks in the sector have, on a market cap-weighted basis, a neutral absolute recommendation.
- Underweight
- An Underweight rating means stocks in the sector have, on a market cap-weighted basis, a negative absolute recommendation.
Country Ratings
- Definition:
- Overweight
- An Overweight rating means investors should be positioned with an above-market weight in this country relative to benchmark.
- Neutral
- A Neutral rating means investors should be positioned with a neutral weight in this country relative to benchmark.
- Underweight
- An Underweight rating means investors should be positioned with a below-market weight in this country relative to benchmark.
IMPORTANT DISCLOSURES, INCLUDING ANY REQUIRED RESEARCH CERTIFICATIONS, ARE PROVIDED AT THE END OF THIS REPORT. IF THIS REPORT IS DISTRIBUTED IN THE UNITED STATES IT IS DISTRIBUTED BY CGS INTERNATIONAL SECURITIES USA, INC AND IS CONSIDERED THIRD-PARTY AFFILIATED RESEARCH.
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| Singapore | CGS International Securities Singapore Pte. Ltd. | Monetary Authority of Singapore |
| South Korea | CGS International Securities Hong Kong Limited, Korea Branch | Financial Services Commission and Financial Supervisory Service |
| Thailand | CGS International Securities (Thailand) Co. Ltd. | Securities and Exchange Commission Thailand |
Other Significant Financial Interests:
(i) As of August 13, 2025 CGS International has a proprietary position in the securities (which may include but not be limited to shares, warrants, call warrants and/or any other derivatives) in the following company or companies covered or recommended in this report:
(a) Affin Bank Berhad, Bank Central Asia, Bank Mandiri, Bank Negara Indonesia, Bank Neo Commerce, Bank Rakyat Indonesia, Bank Tabungan Negara, DBS Group, OCBC, Public Bank Bhd, United Overseas Bank
(ii) Analyst Disclosure: As of August 18, 2025, the analyst(s) who prepared this report, and the associate(s), has / have an interest in the securities (which may include but not be limited to shares, warrants, call warrants and/or any other derivatives) in the following company or companies covered or recommended in this report:
(a) CIMB Group Holdings Bhd
This report does not purport to contain all the information that a prospective investor may require. Neither CGS International nor any of its affiliates make any guarantee, representation or warranty, express or implied, as to the adequacy, accuracy, completeness, reliability or fairness of any such information and opinion contained in this report. Neither CGS International nor any of its affiliates nor their related corporations shall be liable in any manner whatsoever for any consequences (including but not limited to any direct, indirect or consequential losses, loss of profits and damages) of any reliance thereon or usage thereof.
This report is general in nature and has been prepared for information purposes only. It is intended for circulation amongst CGS International’s clients generally and does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person who may receive this report. The information and opinions in this report are not and should not be construed or considered as an offer, recommendation or solicitation to buy or sell the subject securities, related investments or other financial instruments or any derivative instrument, or any rights pertaining thereto.
Investors are advised to make their own independent evaluation of the information contained in this research report, consider their own individual investment objectives, financial situation and particular needs and consult their own professional and financial advisers as to the legal, business, financial, tax and other aspects before participating in any transaction in respect of the securities of company(ies) covered in this research report.
The securities of such company(ies) may not be eligible for sale in all jurisdictions or to all categories of investors.
Restrictions on Distributions
Australia: Despite anything in this report to the contrary, this research is provided in Australia by CGS International Securities Singapore Pte. Ltd. (“CGS SG”) and CGS International Securities Hong Kong Limited (“CGS HK”). This research is only available in Australia to persons who are “wholesale clients” (within the meaning of the Corporations Act 2001 (Cth) and is supplied solely for the use of such wholesale clients and shall not be distributed or passed on to any other person. You represent and warrant that if you are in Australia, you are a “wholesale client”. This research is of a general nature only and has been prepared without taking into account the objectives, financial situation or needs of the individual recipient. CGS SG and CGS HK do not hold, and are not required to hold an Australian financial services license. CGS SG and CGS HK rely on “passporting” exemptions for entities appropriately licensed by the Monetary Authority of Singapore (under ASIC Class Order 03/1102) and the Securities and Futures Commission in Hong Kong (under ASIC Class Order 03/1103).
Canada: This research report has not been prepared in accordance with the disclosure requirements of Dealer Member Rule 3400 – Research Restrictions and Disclosure Requirements of the Investment Industry Regulatory Organization of Canada. For any research report distributed by CIBC, further disclosures related to CIBC conflicts of interest can be found at https://researchcentral.cibcwm.com .
China: For the purpose of this report, the People’s Republic of China (“PRC”) does not include the Hong Kong Special Administrative Region, the Macau Special Administrative Region or Taiwan. The distributor of this report has not been approved or licensed by the China Securities Regulatory Commission or any other relevant regulatory authority or governmental agency in the PRC. This report contains only marketing information. The distribution of this report is not an offer to buy or sell to any person within or outside PRC or a solicitation to any person within or outside of PRC to buy or sell any instruments described herein. This report is being issued outside the PRC to a limited number of institutional investors and may not be provided to any person other than the original recipient and may not be reproduced or used for any other purpose.
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Germany: This report is only directed at persons who are professional investors as defined in sec 31a(2) of the German Securities Trading Act (WpHG). This publication constitutes research of a non-binding nature on the market situation and the investment instruments cited here at the time of the publication of the information.
The current prices/yields in this issue are based upon closing prices from Bloomberg as of the day preceding publication. Please note that neither the German Federal Financial Supervisory Agency (BaFin), nor any other supervisory authority exercises any control over the content of this report.
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This publication is strictly confidential and is for private circulation only to clients of CGS HK.
CGS HK does not make a market on other securities mentioned in the report.
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New Zealand: In New Zealand, this report is for distribution only to persons who are wholesale clients pursuant to section 5C of the Financial Advisers Act 2008.
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Recipients of this report are to contact CGS SG, 10 Marina Boulevard, Marina Bay Financial Centre Tower 2, #09-01, Singapore 018983 in respect of any matters arising from, or in connection with this report. CGS SG has no obligation to update its opinion or the information in this research report. This publication is strictly confidential and is for private circulation only. If you have not been sent this report by CGS SG directly, you may not rely, use or disclose to anyone else this report or its contents.
If the recipient of this research report is not an accredited investor, expert investor or institutional investor, CGS SG accepts legal responsibility for the contents of the report without any disclaimer limiting or otherwise curtailing such legal responsibility. If the recipient is an accredited investor, expert investor or institutional investor, the recipient is deemed to acknowledge that CGS SG is exempt from certain requirements under the FAA and its attendant regulations, and as such, is exempt from complying with the following:
(a) Section 34 of the FAA (obligation to disclose product information);
(b) Section 36 (duty not to make recommendation with respect to any investment product without having a reasonable basis where you may be reasonably expected to rely on the recommendation) of the FAA;
(c) MAS Notice on Information to Clients and Product Information Disclosure [Notice No. FAA-N03];
(d) MAS Notice on Recommendation on Investment Products [Notice No. FAA-N16];
(e) Section 45 (obligation on disclosure of interest in specified products), and
(f) any other laws, regulations, notices, directive, guidelines, circulars and practice notes which are relates to the above, to the extent permitted by applicable laws, as may be amended from time to time, and any other laws, regulations, notices, directive, guidelines, circulars, and practice notes as we may notify you from time to time. In addition, the recipient who is an accredited investor, expert investor or institutional investor acknowledges that as CGS SG is exempt from Section 36 of the FAA, the recipient will also not be able to file a civil claim against CGS SG for any loss or damage arising from the recipient’s reliance on any recommendation made by CGS SG which would otherwise be a right that is available to the recipient under Section 36 of the FAA.
CGS SG, its affiliates and related corporations, their directors, associates, connected parties and/or employees may own or have positions in specified products of the company(ies) covered in this research report or any specified products related thereto and may from time to time add to or dispose of, or may be materially interested in, any such specified products. Further, CGS SG, its affiliates and its related corporations and do and seek to do business with the company(ies) covered in this research report and may from time to time act as market maker or have assumed an underwriting commitment in specified products of such company(ies), may sell them to or buy them from customers on a principal basis and may also perform or seek to perform significant investment banking, advisory, underwriting or placement services for or relating to such company(ies) as well as solicit such investment, advisory or other services from any entity mentioned in this report.
CGS SG does not make a market on the securities mentioned in the report.
Chan Swee Liang Carolina, the Group Chief Executive Officer of the CGS International group of companies (in which CGS SG is a member) is an independent non-executive director of City Developments Limited as of 29 Dec 2020. CGS SG is of the view that this does not create any conflict of interest that may affect the ability of the analyst or CGS SG to offer independent and unbiased analyses and recommendations.
South Korea: This report is issued and distributed in South Korea by CGS International Securities Hong Kong Limited, Korea Branch (“CGS KR”) which is licensed as a cash equity broker, and regulated by the Financial Services Commission and Financial Supervisory Service of Korea. In South Korea, this report is for distribution only to professional investors under Article 9(5) of the Financial Investment Services and Capital Market Act of Korea (“FSCMA”).
Spain: This document is a research report and it is addressed to institutional investors only. The research report is of a general nature and not personalised and does not constitute investment advice so, as the case may be, the recipient must seek proper advice before adopting any investment decision. This document does not constitute a public offering of securities.
CGS International is not registered with the Spanish Comision Nacional del Mercado de Valores to provide investment services.
Sweden: This report contains only marketing information and has not been approved by the Swedish Financial Supervisory Authority. The distribution of this report is not an offer to sell to any person in Sweden or a solicitation to any person in Sweden to buy any instruments described herein and may not be forwarded to the public in Sweden.
Switzerland: This report has not been prepared in accordance with the recognized self-regulatory minimal standards for research reports of banks issued by the Swiss Bankers’ Association (Directives on the Independence of Financial Research).
Thailand: This report is issued and distributed by CGS International Securities (Thailand) Co. Ltd. (“CGS TH”) based upon sources believed to be reliable (but their accuracy, completeness or correctness is not guaranteed). The statements or expressions of opinion herein were arrived at after due and careful consideration for use as information for investment. Such opinions are subject to change without notice and CGS TH has no obligation to update its opinion or the information in this research report.
Corporate Governance Report (CGR):
The disclosure of the survey result of the Thai Institute of Directors Association (“IOD”) regarding corporate governance is made pursuant to the policy of the Office of the Securities and Exchange Commission. The survey of the IOD is based on the information of a company listed on the Stock Exchange of Thailand and the Market for Alternative Investment disclosed to the public and able to be accessed by a general public investor. The result, therefore, is from the perspective of a third party. It is not an evaluation of operation and is not based on inside information.
The survey result is as of the date appearing in the Corporate Governance Report of Thai Listed Companies. As a result, the survey result may be changed after that date. CGS TH does not confirm nor certify the accuracy of such survey result.
| Score Range: | 90-100 | 80-89 | 70-79 | Below 70 | No Survey Result |
|---|---|---|---|---|---|
| Description: | Excellent | Very Good | Good | N/A | N/A |
United Arab Emirates: The distributor of this report has not been approved or licensed by the UAE Central Bank or any other relevant licensing authorities or governmental agencies in the United Arab Emirates. This report is strictly private and confidential and has not been reviewed by, deposited or registered with UAE Central Bank or any other licensing authority or governmental agencies in the United Arab Emirates. This report is being issued outside the United Arab Emirates to a limited number of institutional investors and must not be provided to any person other than the original recipient and may not be reproduced or used for any other purpose. Further, the information contained in this report is not intended to lead to the sale of investments under any subscription agreement or the conclusion of any other contract of whatsoever nature within the territory of the United Arab Emirates.
United Kingdom and European Economic Area (EEA): In the United Kingdom and European Economic Area, this material is also being distributed by CGS International Securities UK Ltd. (“CGS UK”). CGS UK is authorized and regulated by the Financial Conduct Authority and its registered office is at 53 New Broad Street, London EC2M 1JJ. The material distributed by CGS UK has been prepared in accordance with CGS International’s policies for managing conflicts of interest arising as a result of publication and distribution of this material. This material is for distribution only to, and is solely directed at, selected persons on the basis that those persons: (a) are eligible counterparties and professional clients of CGS UK; (b) have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended, the “Order”), (c) fall within Article 49(2)(a) to (d) (“high net worth companies, unincorporated associations etc”) of the Order; (d) are outside the United Kingdom subject to relevant regulation in each jurisdiction, material(all such persons together being referred to as “relevant persons”). This material is directed only at relevant persons and must not be acted on or relied on by persons who are not relevant persons. Any investment or investment activity to which this material relates is available only to relevant persons and will be engaged in only with relevant persons.
This material is categorised as non-independent for the purposes of CGS UK and therefore does not provide an impartial or objective assessment of the subject matter and does not constitute independent research. Consequently, this material has not been prepared in accordance with legal requirements designed to promote the independence of research and will not be subject to any prohibition on dealing ahead of the dissemination of research. Therefore, this material is considered a marketing communication.
United States: This research report is distributed in the United States of America by CGS International Securities USA, Inc, a U.S. registered broker-dealer and an affiliate of CGS MY, CGS SG, CGS ID, CGS TH and CGS HK and is distributed solely to persons who qualify as “U.S. Institutional Investors” as defined in Rule 15a-6 under the Securities and Exchange Act of 1934. This communication is only for Institutional Investors whose ordinary business activities involve investing in shares, bonds, and associated securities and/or derivative securities and who have professional experience in such investments. Any person who is not a U.S. Institutional Investor or Major Institutional Investor must not rely on this communication. The delivery of this research report to any person in the United States of America is not a recommendation to effect any transactions in the securities discussed herein, or an endorsement of any opinion expressed herein. CGS International Securities USA, Inc. (“CGS US”) is a FINRA/SIPC member and takes responsibility for the content of this report. For further information or to place an order in any of the above-mentioned securities please contact a registered representative of CGS US.
CGS International Securities USA, Inc. does not make a market on other securities mentioned in the report.
CGS US has not managed or co-managed a public offering of any of the securities mentioned in the past 12 months.
CGS US has not received compensation for investment banking services from any of the company mentioned in the past 12 months.
CGS US neither expects to receive nor intends to seek compensation for investment banking services from any of the company mentioned within the next 3 months.
United States Third-Party Disclaimer: If this report is distributed in the United States of America by Raymond James & Associates, Inc (“RJA”), this report is third-party research prepared for and distributed in the United States of America by RJA pursuant to an arrangement between RJA and CGS International Securities Pte. Ltd. (“CGSI”). CGSI is not an affiliate of RJA. This report is distributed solely to persons who qualify as “U.S. Institutional Investors” or as “Major U.S. Institutional Investors” as defined in Rule 15a-6 under the Securities and Exchange Act of 1934, as amended. This communication is only for U.S. Institutional Investors or Major U.S. Institutional Investor whose ordinary business activities involve investing in shares, bonds, and associated securities and/or derivative securities and who have professional experience in such investments. Any person who is not a U.S. Institutional Investor or Major U.S. Institutional Investor must not rely on this communication. The delivery of this report to any person in the U.S. is not a recommendation to effect any transactions in the securities discussed herein, or an endorsement of any opinion expressed herein. If you are receiving this report in the U.S from RJA, a FINRA/SIPC member, it takes responsibility for the content of this report. For further information or to place an order in any of the above-mentioned securities please contact a registered representative of CGS US or RJA. https://raymondjames.com/InternationalEquityDisclosures
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