AMBANK - The fifth largest banking group in Malaysia

AMBANK is one of the nine local anchor banks in Malaysia. Through its subsidiaries, it provides a range of financial products and services to corporate and individual customers in Malaysia. The company's retail banking products and services include loans and financing services comprising auto financing, and mortgage and personal loans; deposits; small business services; credit cards; priority banking services; and wealth management services, including unit trust and bancassurance, as well as remittance services. 

Its wholesale banking products and services consist of transaction banking services, including trade finance products, cash management services, e-commerce solutions, and gross payroll solutions; and investment banking services, such as capital market and asset management, equity derivative, broking, funds management, private banking, corporate advisory and fund raising, and debt financing services. 

The company also offers Islamic Banking services consisting of Shariah compliant products and services, and mobile and Internet banking services; general insurance solutions; various solutions in life insurance, wealth protection/savings, and health and medical protection services, as well as employee benefit schemes; and Shariah compliant family Takaful products. 

Its distribution network comprises 179 commercial bank branches, 4 regional business centres, 14 investment bank offices, 50 insurance offices, 26 MBF Cards branches, 884 automated teller machines, and 167 electronic banking centres. 

The company has strategic partnership with MetLife International Holdings, Inc. AMMB was incorporated in 1975 and is based in Kuala Lumpur, Malaysia.

CORPORATE STRUCTURE

MAJOR SHAREHOLDERS

FINANCIAL HIGHLIGHTS

COMMENTS
In FY14, AMMB delivered a seventh consecutive year of record performance. It posted a pre-tax profit of RM2,448.2 million (+14.5%), whilst profit attributable to shareholders grew by 10.0% to RM1,782.4 million. Return on equity improved by 0.2% to 14.1% and earnings per share (basic) lifted from 54.0 sen in FY2013 to 59.3 sen.

The growth in profit is mainly attributable to growth in net fund income, higher contributions from insurance business coupled with lower allowances for impairment on loans and financing. 

AMMB is also targeting a 40%-50% dividend payout ratio for FY13-FY15. DPS for FY14 is increased to 24.1 sen nett from 21.8 sen nett in FY13.

Over the longer term, the entry of ANZ as a strategic partner and investor of AMMB will enhance the group's expertise and product range. Overall, we expect an above average growth rate for AMMB over a long term.