Latest news with #AmBank
The Star
4 days ago
- Business
- The Star
US trade talks raise possibility of more M&A interest in local banks
KUALA LUMPUR: Malaysia's potential move to ease foreign equity limits in its banking sector could open the door to increased merger and acquisition (M&A) interest from regional players, particularly targeting smaller banks such as AMMB Holdings Bhd (AmBank), MBSB Bhd , and Affin Bank Bhd , according to MBSB Research. The research house, formerly known as MIDF Research, said that while the US has reportedly asked Malaysia to lift foreign-equity restrictions in strategic sectors as part of ongoing tariff negotiations, regional investors are more likely to lead the charge. 'We think more interest will come from regional players rather than the United States, especially countries such as China and Singapore, which have a strategic stake in Malaysia,' MBSB Research said. The research house pointed out that several Western players, including Citibank and Standard Chartered, had exited the Asean market in recent years due to intense competition. MBSB Research said AmBank remains a long-discussed M&A target due to its relatively smaller size and improving fundamentals, along with speculation that founder and key shareholder Tan Sri Azman Hashim 'is willing to part with some shares if the valuation is acceptable'. For Affin Bank, the research firm noted that Bank of East Asia is understood to have been seeking to divest its stake for some time. Currently, Malaysia imposes a 30% cap on foreign ownership of commercial banks and a 70% limit for investment and Islamic banks, but these thresholds have often been bypassed. 'We think these thresholds have often been bypassed to avoid single-exposure risk, as there are not sufficient domestic investors,' MBSB Research noted. By comparison, Malaysia's rules are among the most restrictive in the region, the research house said. It said Singapore allows up to 40% foreign ownership in domestic banks, while Vietnam raised its cap to 49% for selected banks in May, up from 30%. Thailand limits foreign ownership in commercial banks to 25%. In Indonesia, the cap is 40%, but higher stakes are possible with Bank Indonesia's approval, provided the acquiring party meets requirements including public listing and sufficient capital strength. According to MBSB Research, financial liberalisation 'does have multiple benefits, most notably driving foreign direct investment interest and industry-wide improvements in efficiency and profitability. Unfortunately, this may come with large-scale rationalisation of work forces.' The research house highlighted several upsides of financial liberalisation, including increased competitiveness in the banking sector through the introduction of global expertise, advanced technology, and improved risk-management practices. It also expects higher foreign capital inflows and stronger corporate governance as a result of greater foreign participation. Additionally, MBSB Research said increased competition could lead to better service quality and higher profitability across the industry, which would support improved valuations. However, it cautioned that liberalisation may also lead to workforce rationalisation, especially as banks consolidate and continue to digitise their operations. Overall, MBSB Research maintained its 'neutral' stance on the banking sector, citing limited near-term re-rating drivers and persistent macroeconomic headwinds. The research house said it continues to favour a bottom-up stock-picking approach, with a preference for defensive names, due to the 'presence of industrywide headwinds, while tailwinds vary on a case-by-case basis'. 'An improved economic outlook remains the core re-rating driver, but we are not expecting this anytime soon,' the research house said, adding that 'sentiment is further weighed down by any possible reinstatement of the goods and services tax and petrol subsidy removal'. The research house named Public Bank Bhd and Hong Leong Bank Bhd as its top picks.
The Star
11-07-2025
- Business
- The Star
AmBank to lower standardised base, lending rates effective July 14
KUALA LUMPUR: AMMB Holdings Bhd (AmBank) will lower its Standardised Base Rate (SBR), Base Lending Rate/Base Financing Rate (BLR/BFR) and Base Rate (BR) effective July 14, 2025. In a notice on its website, AmBank said the SBR will be reduced from 3.0 per cent per annum to 2.75 per cent, while the BLR/BFR will be revised from 6.70 per cent to 6.45 per cent. It said the BR will be revised from 3.85 per cent to 3.60 per cent. "For illustration purposes and subject to change from time to time, the effective interest or profit rate for a 30-year loan or financing of RM350,000 with no lock-in period is 4.0 per cent per annum (SBR+1.25 per cent),' AmBank said. - Bernama
New Straits Times
11-07-2025
- Business
- New Straits Times
AmBank to lower standardised base, lending rates, effective July 14
KUALA LUMPUR: AMMB Holdings Bhd (AmBank) will lower its Standardised Base Rate (SBR), Base Lending Rate/Base Financing Rate (BLR/BFR) and Base Rate (BR) effective July 14, 2025. In a notice on its website, AmBank said the SBR will be reduced from three per cent per annum to 2.75 per cent, while the BLR/BFR will be revised from 6.70 per cent to 6.45 per cent. It said the BR will be revised from 3.85 per cent to 3.60 per cent. "For illustration purposes and subject to change from time to time, the effective interest or profit rate for a 30-year loan or financing of RM350,000 with no lock-in period is four per cent per annum (SBR+1.25 per cent)," AmBank said.
Borneo Post
20-06-2025
- Business
- Borneo Post
AmBank marks 50th anniversary by sponsoring RWMF for first time
Shazman says the RWMF sponsorship reflects AmBank's long-standing relationship with Sarawak. SANTUBONG (June 20): AmBank Group is marking its golden jubilee by becoming the official bank for the Rainforest World Music Festival (RWMF) 2025. The bank group's corporate communications and marketing head Shazman Shahid said the bank was proud to be supporting one of Sarawak's most prominent cultural events. 'AmBank is the official bank for this festival this year. We are thankful to the Sarawak Tourism Board (STB), and the Sarawak government as well. 'This is our first time sponsoring an event of this nature, especially in Sarawak. It's a meaningful milestone for us as we celebrate our 50th anniversary, our golden jubilee,' he said in an interview with The Borneo Post today. According to Shazman, the sponsorship reflects AmBank's commitment to the people, particularly in Sarawak. 'As a bank for the people, and with our tagline 'Your Bank, Malaysia's Bank, AmBank', we are always there for the community, especially the people of Sarawak. 'This initiative also aligns with the bank's long-standing relationship with the state. 'For decades, we have been supporting the people, and the Sarawak government, by extending our financial services and facilities.' On AmBank's presence at this year's RWMF, Shazman said the bank had already set up a booth at the venue, Sarawak Cultural Village (SCV), to provide visitors with an 'immersive AmBank experience'. 'Throughout the three days, the visitors will be able to look forward to exclusive engagements, promotions and activities to bring our brand closer to the people. 'Among these, we'll be powering onsite with our payment solutions and also offering generous discounts to our credit card customers. 'So wherever they are within the nation, they will be able to use our credit card to come over and to spend during the festival,' he said. Shazman also highlighted the alignment between AmBank's community focus and the 2025 RWMF theme, 'Connections: One Earth, One Love'. 'Our real focus is on connection. 'We want to connect with the local community, with visitors across the globe, and with many talented artists who are converging on Santubong.' On the festival's progress over the years, Shazman said AmBank had been observing the development closely before coming on board as a sponsor. 'Of course, before we started our journey to sponsor, we had studied throughout the year. 'It (RWMF) has evolved, and more and more visitors are coming over to Santubong to celebrate the festival for three days. 'The evolution of the RWMF is just amazing, seeing it grow year by year. 'Hopefully for next year, we would be able to work together with the festival organisers as well.' The RWMF, now in its 28th edition, continues to draw thousands of music lovers from around the globe to Sarawak for three days of cultural and musical exchanges. AmBank Kuching official bank rwmf
New Straits Times
09-06-2025
- Business
- New Straits Times
Banking sector poised for stronger earnings: HLIB Research
KUALA LUMPUR: The banking sector's earnings momentum is projected to accelerate in the second half of 2025 (2H), following a modest performance in the first quarter. Hong Leong Investment Bank Bhd (HLIB Research) said the first quarter of 2025 earnings season was broadly in line with expectations, with Bank Islam Malaysia Bhd being the only bank under its coverage to miss estimates due to higher credit costs. The remaining seven banks it covers, namely Affin Bank Bhd, Alliance Bank Malaysia Bhd, AMMB Holdings Bhd (AmBank), CIMB Group Holdings Bhd, Malayan Banking Bhd (Maybank), Public Bank Bhd and RHB Bank Bhd, delivered results that tracked closely with forecasts. The firm said the sector earnings rose 4.1 per cent year-on-year (YoY), driven by lower loan impairment provisions, but fell 3.4 per cent quarter-on-quarter on a sequential rise in credit charges. "Looking ahead, we forecast sector earnings for financial years 2024 to 2026 (FY24-25) to grow at a two-year compound annual growth rate of 3.4 per cent," it said in a note. HLIB Research anticipates net interest margins of the bank in the second quarter of this year to hold up reasonably well sequentially. It pointed out three key forces at play, including fresh liquidity from the recent statutory reserve requirement cut, easing deposit competition and a sector-wide pivot to more disciplined loan expansion and funding strategies. "This proactive stance is already visible, with banks cutting promotional/campaign fixed deposit rates by five to 15 basis points in May, ahead of a potential Overnight Policy Rate cut, though the full margin benefit may only materialise in 2H 2025. "Beyond margins, the bedrock of asset quality is expected to remain solid, supported by resilient domestic economic conditions and minimal US trade exposure," the firm added. Recognising risks from the secondary impacts of trade uncertainty, HLIB Research said any potential weakness will be well-contained. It noted that the sector is significantly more resilient than in previous downturns, primarily due to the formidable provision buffers accumulated over the past five years. It said the "fortress of provisions" provides a robust defence, capable of absorbing any stress and cushioning the gross impaired loan ratio, which currently stands near historical lows. HLIB Research maintained its "Overweight" stance on the banking sector and views the KLFIN Index's year-to-date 7.0 per cent decline as a tactical opportunity to accumulate ahead of a potential recovery in the latter part of the year. The firm's top picks include CIMB with a target price of RM8.80 a share, as well as AmBank (TP: RM6.20) and RHB (TP: RM7.70).
