AMMB Net Profit Rises 32 Pct To RM500 Mln In 1Q FY2025 On NIM Expansion, Lower Impairment

KUALA LUMPUR, Aug 20 (Bernama) -- AMMB Holdings Bhd’s (AmBank Group) net profit rose by 32.2 per cent to RM500.20 million in the first quarter ended June 30, 2024 (1Q FY2025) from RM378.37 million a year before, mainly due to lower impairment charges.

Revenue, however, was lower at RM1.18 billion from RM1.20 billion.

The banking group said its net impairment charges this quarter were lower at RM12.3 million (1QFY2024: RM190.4 million) due to “improved impairment charges in retail banking and business banking with higher forward-looking reversals during the quarter.”

Net interest income (NII) grew 6.4 per cent year-on-year (y-o-y) to RM860.9 million (1Q FY2024: RM808.7 million), on the back of a 13 basis points net interest margin (NIM) expansion to 1.89 per cent (1Q FY2024: 1.76 per cent). Gross loans, advances and financing grew 2.9 per cent y-o-y mainly led by business banking loan growth of 16.5 per cent y-o-y.

Non-interest income (NOII) was 19.2 per cent lower y-o-y to RM317.6 million (1Q FY2024: RM393.2 million) due to the “non-repeat of the AmGeneral Insurance Bhd divestment gain of RM51.1 million and lower trading and securities gain.”

“Continuing operations' net income of RM1.178 billion was 2.4 per cent higher y-o-y, led by NII growth of 6.4 per cent, offset by a 7.1 per cent decline in NOII,” AmBank Group said in a filing with Bursa Malaysia.

Total customer deposits dropped 4.8 per cent year-to-date (YTD) to RM135.5 billion (FY24: RM142.4 billion) as the group managed its cost of funds and diversified funding sources to improve margins.

Time deposits remained flat YTD at RM89.7 billion (FY24: RM89.6 billion) while current and savings accounts (CASA) decreased 13.3 per cent YTD to RM45.8 billion (FY24: RM52.8 billion). 

The group remained highly liquid with a liquidity coverage ratio of 167.9 per cent (FY2024: 164.6 per cent) while the loan-to-deposit ratio was slightly higher at 97.9 per cent (FY2024: 94.2 per cent).

Moving forward, AmBank Group said its strategic focus will be to drive its SME and Mid Corp segments to lead lending growth, build its wealth management offerings, and develop efficient supply chain solutions for customers.  “The group will continue to invest in technology, in line with its digitalisation agenda, to achieve operational excellence through improved process efficiency and the development of productivity tools,” it added.

-- BERNAMA