{
  "id": 16835749,
  "title": "HLIB upgrades AMMB to Buy on earnings resilience, 6.6pct dividend yield",
  "url": "https://urgent.news/2026/10/28/hlib-upgrades-ammb-to-buy-on-earnings-resilience-6-6pct-dividend-yield",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-28T02:32:30.000Z",
  "source": {
    "name": "New Straits Times",
    "slug": "new-straits-times",
    "url": "https://www.nst.com.my/business/corporate/2026/10/1565183/hlib-upgrades-ammb-buy-earnings-resilience-66pct-dividend-yield"
  },
  "original_language": "en",
  "account": "KUALA LUMPUR: Hong Leong Investment Bank (HLIB) Research has raised its rating on AMMB Holdings Bhd to a Buy from Hold, praising the bank's resilient earnings, appealing dividend prospects, and improving shareholder-return outlook. HLIB increased its target price for AMMB to RM7 from RM6.80, suggesting an 11.1% upside from the current share price of RM6.30, not including dividends. With an estimated dividend yield of 6.6%, the revised target price could yield a potential total return of 17.7%.\n\nFollowing a recent share price decline, HLIB perceives a more favorable risk-reward profile, offering a buy-on-weakness opportunity before a significant re-rating driven by AMMB's RM2 billion capital return program starting from FY28. The bank is expected to deliver net profits of RM514 million to RM557 million in the second quarter of FY27, resulting in first-half net profits of RM1.03 billion to RM1.08 billion, representing 48% to 50% of its full-year earnings forecast. Stronger net interest income should help offset weaker non-interest income during a challenging operational landscape.\n\nHowever, volatility in Malaysian Government Securities (MGS) yields could negatively impact non-interest income due to mark-to-market losses on the bank's financial instruments. HLIB forecasts that a 30-basis-point increase in MGS yields could lead to RM91.5 million in trading losses, or 4.2% of its projected FY27 net profit. Nonetheless, the bank's USD-denominated interest-rate swap hedges are anticipated to partially mitigate the impact, while net interest income is expected to provide additional support. HLIB anticipates net interest margins (NIM) to slightly decline from 1.93% in Q1 FY27 as deposit competition drives funding costs higher.\n\nAMMB's asset quality remains robust, with no evident issues of borrowers struggling to meet their loan obligations. This should enable the bank to maintain control over potential loan losses and safeguard its earnings. HLIB also anticipates AMMB to potentially declare an interim dividend of approximately 15 sen per share alongside its second-quarter FY27 results, assuming its earnings remain on track. HLIB estimates the bank's dividend yield could reach around 6.5% in FY27, making it an attractive option for investors seeking consistent dividend income.",
  "summary": "KUALA LUMPUR: Hong Leong Investment Bank (HLIB) Research has upgraded AMMB Holdings Bhd to “Buy” from “Hold”, citing resilient earnings, attractive dividend prospects and an improving shareholder-return outlook.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}