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TA Research raises AmBank’s target price to RM3.70

KUALA LUMPURL TA Research has raised the target price of AmBank group to RM3.70 from RM3.40. and reiterated its Buy call.

The research house said on Wednesday AmBank registered a net profit of RM386.6mil for 1Q22, a steep improvement from net losses amounting to RM4.7bil in 4Q21 (due to exceptional one-off items of RM4.8bil and related legal and professional expenses of RM21mil).

“Compared to a year ago, net profit rose 5.9%, coming in above ours and consensus full-year forecasts.

“Incorporating better-than-expected 1Q22 results, we adjust our topline growth assumptions, namely NIM, non-NII, and contributions from Islamic Banking.

“With that, we revise the FY22/23/24 net profit forecast higher to RM1.356bil/RM1.542bil/1RM,829bil respectively,” it said.

TA Research said this is line with management’s target, i.e., to maintain a PATMI target of RM350mil per quarter.

Incorporating the upward revision to our earnings estimates and updating the risk-free rate assumption to 3.0% from 2.6%, we raise AmBank’s TP to RM3.70 from RM3.40.


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