KLSE Ambank Stock Analysis and Insights

Ambank has been a leading player in the Malaysian banking scene for decades, with a history dating back to 1915.

The bank has undergone significant transformations over the years, including a merger with POS Malaysia in 1994.

Ambank's strong presence in the market is a testament to its ability to adapt to changing market conditions and customer needs.

With a network of over 1,000 branches and a customer base of over 3 million, Ambank is one of the largest banks in Malaysia.

On a similar theme: AmBank

AMMB Holdings Berhad, the parent company of AmBank Group, was founded in 1975. The company has a long history of providing financial services to clients in Malaysia.

With a workforce of 8,200 employees, AmBank Group is a significant player in the Malaysian banking industry. Its CEO, Jamie Ling, leads the company in its mission to provide a wide range of financial products and services.

The company's website is www.ambankgroup.com, where you can find more information about its services and offerings.

Related reading: Ambank Mtap

AMMB Holdings Berhad offers a diverse range of financial products and services, including deposits, loans, credit cards, wealth management, and more. Here's a breakdown of some of its key services:

AMMB Holdings Berhad's diversified approach to financial services has helped it maintain a stable and robust fiscal performance, even in times of economic volatility. The company's strategic positioning across various banking segments, including retail, wholesale, Islamic banking, life insurance, and asset management, has also contributed to its success.

Ambank Group's financial performance has been impressive, with a net profit of RM1.55 billion in 2020, a 10% increase from the previous year.

The group's revenue has consistently grown over the years, reaching RM6.35 billion in 2020, driven by strong loan growth and a robust treasury business.

Ambank's asset quality has remained stable, with a non-performing loan ratio of 1.73% as of 2020, significantly lower than the industry average.

The bank's strong capital position has also been a key factor in its financial performance, with a capital adequacy ratio of 16.1% as of 2020.

Ambank's efficient cost management has helped maintain its net interest margin at 2.35% in 2020, a testament to its ability to balance revenue growth with cost discipline.

The group's return on equity (ROE) has been steadily improving, reaching 12.3% in 2020, driven by its strong financial performance and efficient capital allocation.

AMBANK's key valuation metric is its Price-To-Earnings Ratio, which is used for relative valuation analysis since the company is profitable.

This metric is calculated by dividing AMBANK's market cap by their current earnings, giving a PE Ratio of 9.7x.

AMBANK's PE Ratio is higher than the Asian Banks industry average of 9x, making it expensive compared to its peers.

Here's a summary of AMBANK's key valuation metrics and ratios:

AMBANK's PE Ratio is actually good value compared to the estimated Fair Price-To-Earnings Ratio of 10.2x, making it a relatively attractive investment option.

AMBANK's PE Ratio is 9.7x, which is higher than the peer average of 9.3x. This suggests that AMBANK is expensive compared to its peers.

The PE Ratio for AMBANK is comparable to its peers, with HLFG at 6.3x, RHBBANK at 9.7x, and ABMB at 11.1x.

AMBANK's PE Ratio is also lower than its estimated Fair PE Ratio of 10.2x, indicating that it's a good value compared to its estimated fair price.

Here's a comparison of AMBANK's PE Ratio with its peers:

Let's take a closer look at the shareholder returns of AMBANK and how they compare to the industry and market.

AMBANK's 7-day return was 0%, which is on par with MY Banks' 7-day return of 0.07%. In contrast, MY Market saw a decline of -1.8% over the same period.

One year returns paint a different picture. AMBANK's return of 34.6% far exceeded MY Banks' 13.7% and MY Market's 0.5%.

Here's a quick comparison of the returns:

It's worth noting that AMBANK exceeded the MY Banks industry's return of 13.2% over the past year.

AMBANK's PE Ratio is higher than its peers, standing at 9.7x compared to the peer average of 9.3x.

The table below highlights the differences in PE Ratio among various banks. AMBANK's PE Ratio is more expensive compared to its peers.

AMBANK's PE Ratio is also higher than that of HLFG Hong Leong Financial Group Berhad, which has a PE Ratio of 6.3x.

Earnings Ratio vs Industry is a crucial comparison to make when analyzing a company's financial health. AMBANK's Price-To-Earnings Ratio is 9.7x, which is expensive compared to the Asian Banks industry average of 9x.

This means that investors expect AMBANK to earn more per share than the average Asian Banks company, which can be a good indicator of a company's growth potential.

The Price-to-Earnings (PE) Ratio is a popular metric used to evaluate a company's stock performance. AMBANK's PE Ratio is 9.7x.

To determine if AMBANK's PE Ratio is reasonable, we need to compare it to its estimated Fair PE Ratio. The Fair PE Ratio takes into account the company's forecast earnings growth, profit margins, and other risk factors. AMBANK's Fair PE Ratio is estimated to be 10.2x.

This means that AMBANK is actually good value based on its PE Ratio compared to the estimated Fair PE Ratio.

Analyst forecasts suggest a target price less than 20% higher than the current share price of RM 5.76.

The analyst 12-month forecast for KLSE AMBANK shows a target price of RM 6.01, which is only 4.4% higher than the current share price.

The average 1Y Price Target has been consistently above the current share price since Feb '25, with the highest target price of RM 6.80 in Sep '25.

A closer look at the historical data reveals that the target price has been increasing steadily over the past year, with the exception of a slight dip in Jul '25.

The dispersion, or the spread of the target prices, has been relatively stable, ranging from 4.3% to 10.5% over the past 12 months.

Here's a summary of the analyst forecasts:

It's worth noting that the number of analysts following KLSE AMBANK has remained constant at 15 over the past year, indicating a consistent level of interest in the stock.

In the competitive banking landscape of Malaysia, AMBank faces stiff competition from other established players.

One of its main competitors is Public Bank, which is known for its wide range of financial services and products.

RHB Bank is another significant competitor, with a strong presence in the country's banking sector.

AMBank's target market includes small and medium-sized enterprises (SMEs), which are a crucial segment in the Malaysian economy.

The average 1-year price target for AMBANK is 6.13 MYR, with a low forecast of 5.23 MYR and a high forecast of 7.14 MYR.

Analysts have a statistical confidence in the consensus price target, with a dispersion of 10.5% and a range of 4.50 MYR to 6.80 MYR.

The intrinsic value of one AMBANK stock under the Base Case scenario is 7.69 MYR.

Analysts forecast that the target price is less than 20% higher than the current share price.

Here's a breakdown of the analyst forecasts:

Note that the dispersion is the percentage difference between the highest and lowest forecasts, and the range is the difference between the high and low forecasts.

Ammb Holdings Berhad operates in the same industry as several key competitors, including Kumpulan Perangsang Selangor Berhad and Gamuda Berhad.

Kumpulan Perangsang Selangor Berhad, a Malaysian-based conglomerate, has a market capitalization of approximately RM 4.8 billion.

Gamuda Berhad, a leading Malaysian construction and infrastructure company, has a strong presence in the Southeast Asian market.

Kumpulan Perangsang Selangor Berhad's revenue for the year 2020 was around RM 2.3 billion, with a net profit of RM 214 million.

Gamuda Berhad's revenue for the same period was approximately RM 3.5 billion, with a net profit of RM 334 million.