BUSINESS

AMMB NET PROFIT JUMPS TO RM237.32 MLN IN Q2 DESPITE REVENUE DECLINES

26/11/2021 03:34 PM

KUALA LUMPUR, Nov 26  -- AMMB Holdings Bhd’s net profit jumped to RM321.04 million in the second quarter ended Sept 30, 2021 from RM237.32 million in the corresponding quarter a year ago even as it navigated declines in revenue.

Revenue for the period dropped to RM1.12 billion from RM1.15 billion a year ago.

AmBank group chief executive officer Datuk Sulaiman Mohd Tahir said AmBank Group was able to make good progress with profit before provision, growing 14 per cent to RM1.35 billion.

“Profit after tax and minority interests grew 17 per cent to RM708 million. We are able to retain a tight control on costs, which led to our cost-to-income ratio improving further to 42.7 per cent,” he said in a statement.

Sulaiman said the bank is clear about the importance of financial institutions joining the effort to support the government in easing the financial burden of those affected by the pandemic.

“From the ongoing PEMULIH relief programme to the latest Financial Management and Resilience Program (URUS), AmBank will continue to assist our customers determine the financial assistance they require in a targeted and sustainable manner.

“We continue to set aside pre-emptive provisions against certain loan portfolios, bringing our total overlay reserves to RM900 million,” he added.

The group recorded a net impairment charge of RM377.1 million, which was lower compared to RM382.4 million a year ago, resulting from higher model-driven forward looking provisions taken, and offset by lower overlays.

As a proactive measure to bolster the group’s exposure to retail and small and medium enterprise customers, as well as the oil and gas sector, RM67.6 million of overlay was charged for the quarter under review.

AMMB’s gross loans and financing recorded a growth of 0.7 per cent or RM794.5 million year-to-date (YTD) to RM115.6 million, mainly contributed by RM1.1 billion, RM491 million and RM415 million increase in mortgage, personal financing and business banking loans, respectively.

“This was partially offset by a RM844 million decrease in wholesale banking loans. Deposits from customers reduced by 3.9 per cent YTD to RM115.9 billion.

“Time deposits decreased 5.3 per cent YTD, while CASA balances remained broadly stable YTD at RM35.6 billion. Current account savings account mix was higher at 30.7 per cent. AmBank remain highly liquid, with a liquidity coverage ratio of 180.9 per cent as at Sept 30, 2021,” he added.

 -- BERNAMA

 

 


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