AMMB surges as investors eye some RM2 bil excess capital release
AMMB Holdings Bhd shares reached a record high following the bank's announcement of a potential RM2 billion excess capital release. Analysts are optimistic about the bank's capital management strategy and its ability to increase dividend payouts while maintaining a strong CET1 ratio.
Why it matters
The move signals strong financial health for a major Malaysian bank and provides a positive outlook for investors seeking dividend-focused growth in the banking sector.
BURSA SGX Home Hot Stock Make The Edge Malaysia your preferred source on Google KUALA LUMPUR (Aug 3): AMMB Holdings Bhd (KL: AMBANK ) surged on Monday to a new record as the sixth-largest Malaysian bank by assets flagged a potential release of some RM2 billion in excess capital to shareholders.
Basel III reforms are estimated to lift AMMB’s common equity tier-1 (CET1) ratio — a key measure of a bank’s financial strength and ability to absorb losses — about two percentage points by March 31, 2028 (FY2028), according to analysts who attended the bank’s analyst briefing.
AMMB is weighing options, such as raising its dividend payout and returning the excess capital equivalent to about 60 sen per share, Maybank Investment Bank said in a note. “We are positive on AMMB’s capital management plan.”
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