“The revision cites lower provisioning assumptions and a slightly more bullish stance on loan growth for the group,” the research firm said in a note.

The banking group recorded a net profit of RM1.87 billion for FY2024, a 9.3% increase from the previous financial year’s RM1.71 billion.

However, revenue declined to RM4.65 billion from RM4.71 billion due to a drop in net interest income (NII).

“We maintain our belief that AmBank is well-positioned for consolidation.

“The group’s leadership in the small and medium-sized enterprises profile, a high growth segment, could accelerate market share growth in anticipation of improved medium-term economic prospects,” it said.

AmBank’s shares climbed during the morning session, driven by a robust net profit report for FY2024.

At 10.15am, its shares rose by three sen to RM4.30, with 2.01 million shares traded.

Meanwhile, RHB Research reduced AmBank’s FY2025F-FY2026F net profit estimates by 2% to 3%.

“These adjustments factor in lower-than-expected loan growth in FY2024 leading to a decreased NII, alongside stronger fee income assumptions driven by a robust advisory and deals pipeline,” it said.

RHB highlighted AmBank as a top sector pick for its dividend potential following the completion of capital rebuilding exercises.

Kenanga IB maintains an “outperform” rating for the banking group with a revised target price (TP) of RM5.20, up from RM4.80, while RHB maintains its “buy” call with a lowered TP to RM4.90 from RM5.

As at 12.30pm, AmBank’s share price was up by four sen or 0.94% at RM4.31, giving the group a market capitalisation of RM14.28 billion.