Stock Name: AMBANK
Company Name: AMMB HOLDINGS BHD
AMMB Holdings Bhd's shares rose five sen in the morning session today, following the company's favourable third quarter
performance.
As at 10.38am, the share price stood at RM7.36, after opening at RM7.29, with 400,000 shares transacted.
Research houses are in consensus that AMMB's results were within their expectation, with Alliance Research, RHB Research and HwangDBS Vickers saying the nine-month net earnings made up 74 per cent of their financial year 2014 estimation.
Alliance Research said AMMB's earnings growth has mainly been driven by strong non-interest income and low loan loss provision.
"Nevertheless, loans growth for the period remains sluggish," it said in a research note today.
RHB Research in a separate note said although AMMB's results were within expectation, they were a mixed bag.
It said non-interest income stayed healthy, up seven per cent
quarter-on-quarter and 21 per cent year-on-year, and the overhead drop of four to five per cent quarter-on-quarter was evident.
"However, a jump in impaired hire purchase loans (25 per cent
quarter-on-quarter and 36 per cent year-on-year) may raise concerns on its asset quality and dampen sentiment in the near term," it said.
Meanwhile, HwangDBS Vickers Research in another note said the asset quality blip in AMMB hire purchase portfolio is not alarming but would still be monitored.
It said AMMB's loan loss coverage ratio remained one of the highest in the industry at 119 per cent and its collective allowance of 2.2 per cent should be sufficient to buffer asset quality stress.
The research house said AMMB's 40 per cent dividend payout assumption is still on track and it expects the bank's financial year 2014 net profit to grow 10 per cent, the lower end of AMMB management's 10-12 per cent target.
Alliance Research and RHB Research have maintained a 'neutral' view on AMMB while HwangDBS Vickers has kept a 'hold' call on the financial institution.
Alliance Research and HwangDBS Vickers' target price remained at RM7.84 and RM7.50 respectively, while RHB Research's fair value was pegged at RM8.35.-- Bernama
Company Name: AMMB HOLDINGS BHD
| Research House: ALLIANCE | Price Call: HOLD | Target Price: 7.84 |
AMMB Holdings Bhd's shares rose five sen in the morning session today, following the company's favourable third quarter
performance.
As at 10.38am, the share price stood at RM7.36, after opening at RM7.29, with 400,000 shares transacted.
Research houses are in consensus that AMMB's results were within their expectation, with Alliance Research, RHB Research and HwangDBS Vickers saying the nine-month net earnings made up 74 per cent of their financial year 2014 estimation.
Alliance Research said AMMB's earnings growth has mainly been driven by strong non-interest income and low loan loss provision.
"Nevertheless, loans growth for the period remains sluggish," it said in a research note today.
RHB Research in a separate note said although AMMB's results were within expectation, they were a mixed bag.
It said non-interest income stayed healthy, up seven per cent
quarter-on-quarter and 21 per cent year-on-year, and the overhead drop of four to five per cent quarter-on-quarter was evident.
"However, a jump in impaired hire purchase loans (25 per cent
quarter-on-quarter and 36 per cent year-on-year) may raise concerns on its asset quality and dampen sentiment in the near term," it said.
Meanwhile, HwangDBS Vickers Research in another note said the asset quality blip in AMMB hire purchase portfolio is not alarming but would still be monitored.
It said AMMB's loan loss coverage ratio remained one of the highest in the industry at 119 per cent and its collective allowance of 2.2 per cent should be sufficient to buffer asset quality stress.
The research house said AMMB's 40 per cent dividend payout assumption is still on track and it expects the bank's financial year 2014 net profit to grow 10 per cent, the lower end of AMMB management's 10-12 per cent target.
Alliance Research and RHB Research have maintained a 'neutral' view on AMMB while HwangDBS Vickers has kept a 'hold' call on the financial institution.
Alliance Research and HwangDBS Vickers' target price remained at RM7.84 and RM7.50 respectively, while RHB Research's fair value was pegged at RM8.35.-- Bernama
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