AMMB Stock Halted on Surprise $699 Million 1MDB Settlement
- Payment a ‘huge negative surprise’: Hong Leong Investment Bank
- AMMB to make provisions in 4Q, skip proposing final dividend
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AMMB Holdings Bhd. asked for its shares to be suspended for two days after the Malaysian bank said it will suffer losses following a 2.83 billion ringgit ($699 million) settlement to the government over the 1MDB scandal.
The lender that held former Prime Minister Najib Razak’s bank accounts, said the settlement will hurt its earnings for the year ending March 2021. It will set aside provisions in the final quarter of the fiscal year, which will translate to a proforma loss of 93.89 sen a share, and will skip the final dividend, according to a filing.