KUALA LUMPUR: CIMB Equities Research keeps AMMB an OUTPERFORM and its top pick for the banking sector.
It said on Tuesday, Feb 9 the upside for AMMB was potential re-rating catalysts of value-add from ANZ, benefits from the group revamp, potential rise in investment banking income, and new growth avenue from the foreign exchange and derivative businesses.
AMMB's 9MFY3/10 net profit climbed 12.6% yoy to RM766.9m, 6-9% ahead of itsr forecast and consensus on an annualised basis.
The outperformance stemmed primarily from lower-than-expected overheads. From 6% yoy in Jun-Sep 09, loan growth perked up to 11.1% yoy in Dec 09. Net NPL ratio improved further from 2.2% in Sep 09 to 1.8% in Dec 09.
"Although we are raising our net earnings forecasts by 1-7%, we retain our DDM-based target price of RM6.30 due to the increase in share base from a special issue. The record earnings in 3Q and the improvements in loan growth and asset quality support our view of favourable prospects," it said.
About Me
- Nuang
- Ibrahim bin Ramli@Nuang started his career with CIMB Wealth Advisors Berhad as Agency Manager in April, 2008.Previously he was an Internal Auditors and Accounts Executive with Perodua Sales Sdn Bhd since 17 August, 1994. His background:- 1.Certified of Achievement for Master Sales Leadership from Dr Lawrence Walter Ng of President of The Art Of Learning and International Of Learning Without Learning 2.Certified for eXtra Ordinary Performance of Lawrence Walter Award Certificate for One Million Ringgit Club 2007 3. Certified Life & General insurances 4. Conferred with Diploma in Business Studiess & Bachelor of Business Admin(Hons)Finance from UiTM, Terengganu Branch & Shah Alam respectively;
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