Stock Name: AMMB
Company Name: AMMB HOLDINGS BHD
Research House: MIMB



MIMB Investment Bank Bhd has revised upwards, AMMB Holdings Bhd's net profit forecast for financial year 2011 and 2012, to RM1.35 billion and RM1.60 billion respectively from RM1.228 billion and RM1.33 billion respectively.

"With the improved operating environment and slightly better-than-expected results, we have fine-tuned our estimated financial year 2011 and 2012 net profit by 5.5 per cent and 20.3 per cent respectively," said MIMB Investment in a research note today.

AMMB posted a 40.7 per cent increase in profit after tax and minority interests to RM701.2 million in the first half of its financial year ending March 31, 2011.

Revenue during the period rose to RM3.477 billion from RM3.155 billion previously.

MIMB Investment said AMMB's reported first half financial year ending March 2011 net profit of RM701.16 million, accounted for 54.7 per cent of its previous full year estimate of RM1.28 billion.

It also raised AMMB's 2011 fair value to RM6.40 from RM5.60, representing a price-to-book (P/BV) ratio of 1.9x and 1.7x for financial year 2011 and 2012 on the back of an estimated Return On Equity (ROE) of 13.5 per cent and 14.6 per cent respectively. -- Bernama