Published on 21 Dec 2017.
RAM Ratings has reaffirmed the AA2/Stable/P1 financial institution ratings of AmInvestment Bank Berhad (the Bank). The reaffirmed ratings reflect those of AmBank (M) Berhad (AmBank, rated AA2/Stable/P1), the core subsidiary of AMMB Holdings Berhad (AMMB or the Group). AmInvestment remains a highly strategic entity as the investment-banking and stockbroking arm of the Group. The Bank is expected to receive ready group support should the need arise.
AmInvestment’s operations are highly integrated with those of its sister banks, AmBank and AmBank Islamic Berhad, under a universal-banking model. This allows the Bank to leverage their larger balance sheets to underwrite sizeable deals. AmInvestment is an established domestic investment bank, particularly in the debt capital market. On the stockbroking front, AmInvestment ranked 6th by trading value among stockbrokers in 11M 2017, despite a smaller market share of 5.1% (2016: 7th, 5.5%).
Similar to other investment banks, AmInvestment’s earnings display an inherent volatility as its involvement in capital-market activities is subject to market conditions and investor sentiment. Nonetheless, the Bank enjoys a robust capital position. Its common-equity tier-1 and total capital ratios stood at a respective 35.4% and 35.6% as at end-September 2017.
Analytical contact
Chan Yisze
(603) 7628 1111
yisze@ram.com.my
Media contact
Padthma Subbiah
(603) 7628 1162
padthma@ram.com.my
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