PETALING JAYA: AMMB Holdings Bhd has reached a global settlement of RM2.83 billion with the Finance Ministry (MOF), following the review by the relevant authorities of historical transactions by 1Malaysia Development Bhd (1MDB) and its related entities.
“The group has since strengthened and enhanced its processes to meet the current stringent regulatory standards. To this end, the AMMB Group has decided to resolve these historical matters to allow the group to focus fully on its business.
“In this respect, the AMMB Group has to date reached an agreement with MOF for a sum of RM2.83 billion to be paid towards the full and final settlement in relation to all these historical matters,” it said in a statement on Friday.
As a result of the settlement, the group said, a material impact on its financial results for the period ending March 31, 2021 is expected, as a provision for the sum of RM2.83 billion will be reflected in its fourth quarter earnings.
Consequently, the group will not be proposing any final dividends for the year ending March 31.
“The group remains financially resilient and has sufficient financial resources to absorb this settlement without having to raise additional equity capital.”
As of Dec 31, 2020 the proforma impact to Core Equity Tier 1 and Total Capital Ratio is estimated to be reduced from 13.52% to 11.01%; and 16.39% to 13.88%, respectively after the proposed provision for the global settlement.
AMMB stressed that as part of the global settlement it will continue, as it has for the past five years, to strengthen its fundamentals, particularly in terms of corporate governance, by continuing to improve its systems and processes to strengthen due diligence.
Source: The Sun Daily
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