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Macquarie initiated coverage on AMMB Holdings Bhd (KLSE:AMM) with a neutral rating and a price target of MYR5.39.
The Malaysian banking group reported solid results for the fourth quarter and full fiscal year 2025, according to Macquarie’s research note.
The bank has made a good start to its midterm strategic plan, but Macquarie identified potential challenges to achieving AMMB’s longer-term return on assets (ROA) and return on equity (ROE) goals.
Macquarie expressed skepticism about AMMB’s targets for credit cost and operating expense growth, suggesting these goals may be difficult to achieve in the current environment while meeting the bank’s objectives of 1.1% ROA and 11% ROE by fiscal year 2029.
With minimal upside potential to the price target, Macquarie ranked AMMB as its least preferred stock among Malaysian banks under its coverage.
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