One-off prosperity tax may leave RM130 to RM140 mln mark on Ambank

KUCHING: The one-off prosperity tax could leave a RM130 million to RM140 million mark on AMMB Holdings Bhd (Ambank), analysts gather following a meeting with the group.

According to AmInvestment Bank Bhd (AmInvestment Bank Bhd), management shared that this would be derived from its main business units of retail banking, business and wholesale banking and insurance.

“This guidance is premised on the group achieving its RM350 million per quarter profit after tax and minority interests (PATAMI) target for financial year 2022 (FY22),” the research firm said.

AmInvestment Bank highlighted that regarding the interest waiver propositioned for the Bottom 50 per cent (B50) accounts under moratorium, management anticipates RM40 million to RM50 million cost to be reflected in the third quarter of FY22 (3QFY22).

“This only makes up circa five per cent of the group’s expected quarterly top-line.”

The research firm anticipated the period to also be cushioned by stronger NII, thanks to a more noticeable economic reopening and recovery in loan demand.

It recapped that management opines this would come mainly from mortgage and small and medium enterprise (SME) segments.

AmInvestment Bank also gathered from the meeting that the group will continue to be cautious with its provisioning needs, having accumulated overlays of RM158 million so far with total provisions of RM745 million booked in FY21.

“While it is not expected for the coming quarter’s impairments to be as significant as 1QFY22 (RM199 million), it will likely include some prudent consideration with regards to some oil and gas accounts.