AMBANK SHARES UP ON PLAN TO DISPOSE OF NPLS
KUALA LUMPUR, Jan 4 (Bernama) – Shares of AMMB Holdings Bhd (AmBank Group) were higher today following the group’s announcement to dispose of its non-performing loans (NPLs) and financing worth an aggregated RM553.9 million.
In anote today, Public Investment Bank said while financial benefits could not be ascertained at this juncture, the move was nevertheless a positive one as the cash infusion into the group for working capital purposes would further augment its medium to long-term growth.
Yesterday, AmBank Group announced that it is cleaning up the loan books in AmBank (M) Bhd and AmBank Islamic Bhd by selling off RM553.91 million of NPLs to Aiqon Capital Group Sdn Bhd.
The announcement was made after it received the green light from Bank Negara Malaysia for the proposal, which is part of the strategy to strengthen both AmBank and AmBank Islamic’s financing management and to monetise the portfolio.
“We keep our forecast unchanged at this juncture pending further clarity. We continue to like the group for its earnings growth recovery, though we keep our trading ‘buy call’ pending further sustainability,” it said.
Public Investment has raised its target price for the stock to RM4.50 from RM4.20 previously as it make minor tweaks to long-term growth assumptions.
At 12.30 pm, shares of AMMB were up by two sen to RM4.35 with 792,200 shares transacted.
-- BERNAMA
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