AmBank Shares Surge 3.25 Pct On WT29 Strategic Shift
KUALA LUMPUR, Aug 3 (Bernama) -- AMMB Holdings Bhd’s share price surged 3.25 per cent on expectations that its strategic shift towards higher-return segments and disciplined capital allocation would drive sustainable return-on-equity expansion.
At 10.27 am, the stock climbed 22 sen to RM6.98, with 2.40 million shares traded.
Hong Leong Investment Bank Bhd (HLIB) said it believed the group’s transformation under the Winning Together 2029 (WT29) plan would focus on capital efficiency, higher-quality growth and shareholder returns.
Rather than pursuing broad-based loan expansion, it said management intends to leverage its full banking ecosystem, spanning transaction banking, wealth management and capital markets, to deepen customer relationships and capture greater wallet share.
This follows a deliberate repositioning away from lower-return segments where pricing competition remains intense and customer engagement is largely transactional.
“We reckon this strategy should gradually improve the group’s earnings mix, as revenue contribution shifts beyond traditional lending margins.
“However, the transition towards higher-quality growth could result in a more measured loan expansion trajectory in the near term,” it said in a note.
HLIB also said operational efficiency remains a key area of execution under WT29, with the group continuing to invest heavily in technology transformation, as it has committed RM700 million in technology investments over five years previously.
The investment is expected to accelerate over the next three years as it modernises its technology architecture, strengthens data capabilities, enhances cybersecurity and prepares for artificial intelligence (AI) adoption.
“While the elevated investment cycle may weigh on cost efficiency in the short term, we opine that successful implementation could provide structural operating leverage as benefits scale across the organisation amid easing operating expense pressure,” it added.
HLIB maintained its "buy" call on AMMB with its target price of RM7.40.
-- BERNAMA