KUALA LUMPUR (June 30): Foreign shareholdings in AMMB Holdings Bhd (KL:AMBANK) and RHB Bank Bhd (KL:RHBBANK) have reached new highs in recent months, according to the latest data from CIMB Securities.

AMMB’s foreign shareholding, excluding strategic investors, rose to a recent peak of 33.5% in March, up from 31.2% in December 2024. 

RHB, meanwhile, saw its foreign stake climb to 20.5% in May — its highest level in over 15 years — from 20.1% in April.

In contrast, foreign shareholdings in large-cap lenders, including CIMB Group Holdings Bhd (KL:CIMB), Public Bank Bhd (KL:PBBANK), and Malayan Banking Bhd (KL:MAYBANK), showed signs of easing from recent peaks.

CIMB’s foreign ownership inched up to 33.9% in May, compared with 33.7% in April, but remained below the recent high of 35.6% recorded in February. Still, it was higher than the 31.4% level seen in May 2024.

Public Bank’s foreign stake slipped to 25.6% in May 2025, down from 25.9% in April and below the recent peak of 26.9% in December 2024.

Maybank posted a modest rebound, with foreign shareholding rising to 19.48% in May from 19.20% in April. However, this remained below the recent high of 20.68% reached in September 2024.

Among other mid-cap banks, foreign shareholdings declined slightly. Hong Leong Bank Bhd (KL:HLBANK) saw its foreign stake dip to 11.8% in March from 12.1% in December 2024, while Alliance Bank Malaysia Bhd's (KL:ABMB) foreign shareholding fell to 21.8% in May from 22.5% in April, well below its recent peak of 23.9% in August 2024.

CIMB Securities maintained its 'neutral' call on the banking sector, citing upside risks such as lower credit costs, improved net interest margins, and bond-related gains in non-interest income.

However, it flagged downside risks including rising funding costs, potential liquidity outflows, and deteriorating asset quality.

The house also kept ‘buy’ calls on ABMB, Hong Leong Bank, Public Bank, and RHB Bank, supported by their dividend yields.

It noted merger and acquisition potential in ABMB and earnings contributions from Hong Leong Bank’s Chinese associate — Bank of Chengdu Co Ltd — as additional catalysts.