The group is set to capitalise on loan book repricing, given the high percentage of floating rate loans, said MIDF Research. is expected to post improved earnings on a consistent basis, benefiting from loan book repricing in the coming months.
“We believe that AMMB is an extremely attractive prospect for its valuation, given that it has resumed regular dividend payouts, offers the possibility of a lucrative special dividend announcement, has displayed steady improvements in cost-income ratio management and offers a solid return-on-equity even while affected by cukai makmur,” it added.
As the group has resumed its dividend payouts from 4Q22, MIDF Research anticipates a special dividend payout for financial year ending March 31, 2023 upon the finalisation of AmBank’s divestiture of AmGeneral Holdings. “Our target price is based by pegging its FY23 book per share to an upgraded price-to-book value of 0.7 times,” it said.