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17-02-2024, 10:04 AM
AmBank is one of the smaller Bursa banks in terms of total assets or market cap. For those of you who have been following the 1MDB case, Ambank took a hit in 2021 to “settle the 1 MSB issues”. You can see this clearly in its ROE trends.
![[Image: Ambank-ROE-NIM.png]](https://i.postimg.cc/DyN6wjBC/Ambank-ROE-NIM.png)
Notwithstanding the IMDB issues, its return is slightly lower than the sector median. One of the reason for this is its lower Net Interest Margin (NIM) relative to the sector median. I am sure this has nothing to do with 1MDB
From a relative performance perspective, Ambank did better than my reference bank - Affin. Of course the share price of Affin had move recently due to the news about the Sarawak Stage govt increasing its stake.
But there is no such news catalyst for Ambank. So Ambank will have to improve its returns and do better than the sector median for its share price to move higher. Can they do this?
Notwithstanding the IMDB issues, its return is slightly lower than the sector median. One of the reason for this is its lower Net Interest Margin (NIM) relative to the sector median. I am sure this has nothing to do with 1MDB
From a relative performance perspective, Ambank did better than my reference bank - Affin. Of course the share price of Affin had move recently due to the news about the Sarawak Stage govt increasing its stake.
But there is no such news catalyst for Ambank. So Ambank will have to improve its returns and do better than the sector median for its share price to move higher. Can they do this?