PETALING JAYA: AMMB Holdings Bhd
’s (AmBank) new five-year strategic plan aims to raise its returns and valuation by the market and analysts feel its proposed strategy is achievable despite possible execution challenges.
The banking group’s new five-year strategic plan dubbed “Winning Together” aims to deepen customer relationships and ultimately expand its return on equity (ROE) to 11% to 12% by financial year 2029 (FY29) from 8.3% in FY24.
It also wants to raise its return on assets to around 1.1% by FY29 (FY24: 0.97%) by shifting funding mix towards lower-cost retail deposits to improve profitability and with that, double absolute dividend per share (DPS) to about 45 sen by FY29.
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