AMMB's quarterly results within analysts' expectations

Alliance Research said that AMMB Holdings Bhd's fiscal third quarter results - which saw the company's nine months net earnings increased by 9.1 per cent to RM1.24 billion - came within expectations.

"We maintain our Neutral recommendation for AMMB with an unchanged target priceof RM6.66.

"Our target price is derived from our Gordon Growth Model (implied a 1.5xCY13 P/B and ROE of 14.6 per cent) but subject to a 10 per cent blanket discount following ourdowngrade of the banking sector to

neutral in last 2012.

"Key re-rating catalysts include ANZ increases its stakes on the group, and stronger than expected non-interest income, while key downside risks to our recommendation include lower than expected

loansgrowth, NIM compression due to competition and deterioration in asset quality," said Alliance Research in its report this morning.