AMMB Holdings reported another sequentially stronger 3QFY24 net profit of RM543.4m (+22.3% YoY, +15.7% QoQ), though this was distorted by various oneoff items – RM111.9m impairment of intangible assets, RM80.0m charge for restructuring expenses and RM537.6m in tax credits. Of notable concern is a huge RM328.2m in additional credit impairment overlay undertaken, reflective of asset quality concerns which we had flagged previously, though we reckon management had also taken this liberty considering the tax credit buffer. Cumulative 9MFY24 core net profit of RM1.32bn (-0.2% YoY) is within expectations at 75% and 76% of our and consensus full-year estimates respectively. We remain encouraged over AMMB’s long-term prospects, reflected by steady improvements made on the operational front though we trim FY24-FY26 estimates by ~5% on average as we input higher credit costs We also cut our call to Neutral as AMMB’s current share price has exceeded our dividend-based target price of RM4.20.
Source: PublicInvest Research - 27 Feb 2024
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AMBANKCreated by PublicInvest | Nov 12, 2024