Wednesday, August 15, 2012

AMMB Holdings: Maintain Hold - Challenges Remain

Challenges Remain
  • HOLD maintained. AMMB’s 1QFY3/13 net profit of MYR449m (+5%YoY) was broadly within our and consensus forecasts. While accounting for 27% of our full-year estimates, challenges remain in that guidance is for further NIM compression ahead and potentially higher credit costs.
  • Operating profit growth todate has been subdued and we see few catalysts in the near term. Our forecasts are maintained, as is our HOLD call and TP of MYR6.30 (2012 P/BV of 1.6x, 14.1% ROE).
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Source: Maybank Research - 15 August 2012

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