BUSINESS

AMMB 3Q NET PROFIT HIGHER AT RM543.41 MLN WITH ONE-OFF TAX CREDIT

26/02/2024 03:24 PM

KUALA LUMPUR, Feb 26 (Bernama) -- AMMB Holdings Bhd posted a higher net profit of RM543.41 million in the third quarter ended Dec 31, 2023 (3Q FY2024) compared with RM444.21 million in the same quarter of 2022, boosted by a one-off tax credit.

Revenue fell to RM1.15 billion during the quarter under review versus 1.22 billion previously, the banking group said in a Bursa Malaysia filing.

For the cumulative nine-month period, AMMB’s net profit rose to RM1.39 billion versus RM1.28 billion over the same period a year ago while revenue decreased to RM3.48 billion from RM3.55 billion previously.

In a separate statement, AMMB said total income was marginally lower at RM3.48 billion in the nine months of FY2024, with income from continuing operations largely unchanged at RM3.43 billion.

Net interest margin (NIM) for 9M FY2024 was lower at 1.79 per cent year-on-year (y-o-y) due to a rise in funding cost as deposits repriced upwards following a series of rises in the overnight policy rate (OPR) to 3.00 per cent as at Dec 31, 2023 from 2.00 per cent as at June 30, 2022.

AMMB said it also recognised a one-off tax credit worth RM537.6 million this quarter.

With the one-off tax credit of RM537.6 million recognised, the effect of the one-off items for this quarter was a RM135.1 million net benefit to profit-after-tax and minority interests (PATAMI), it said.

“We have taken additional prudent overlays to improve the group’s loan loss coverage levels, particularly when the various pandemic-related loan repayment schemes end,” said group chief executive officer Jamie Ling.

“We are in the final year of our Focus 8 strategy, delivering a return on investment (ROE) of 10 per cent, and the continued strengthening of the group’s capital ratio positions us well into the future,” Ling said.

The group’s overall loan loss coverage, excluding regulatory reserves, rose to 110.7 per cent in the 3Q FY2024 from 96.2 per cent in the previous quarter.

Gross loans and financing grew marginally year-to-date (YTD) to RM131.3 billion with a 4.0 per cent y-o-y growth while customer deposits grew by 4.3 per cent YTD to RM135.9 billion.

The group said it maintains an optimistic stance on FY2024 prospects supported by resilient domestic demand and the expected recovery in external demand.

Pragmatic implementation of Budget 2024 will provide additional impetus to economic activity, it said.

“The group remains committed to ensuring its FY2021 to FY2024 Focus 8 strategy ends on a high note by focusing on driving sustainable revenue growth, maintaining cost discipline, improving asset quality, ensuring healthy liquidity position and strengthening capital levels further,” it added.

-- BERNAMA


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