AMMB 2Q Net Profit Rises To RM500.57 Mln, Declares 10.3 Sen Dividend

KUALA LUMPUR, Nov 27 (Bernama) -- AMMB Holdings Bhd’s (AmBank Group) net profit for the second quarter (2Q) ended Sept 30, 2024, climbed to RM500.57 million from RM469.78 million in the same period a year ago.

Revenue increased to RM1.23 billion from RM1.12 billion previously, it said in a filing with Bursa Malaysia.

For the first half year ended Sept 30, 2024, net profit rose to RM1.00 billion from RM848.15 million while revenue improved to RM2.41 billion from RM2.33 billion previously.

The group said for the first half of its financial year ending March 31, 2025 (1H FY2025), net interest income (NII) grew by 6.5 per cent year-on-year (y-o-y) to RM1.76 billion (1H FY2024: RM1.65 billion).

“This growth was mainly driven by 14-basis point expansion in net interest margin (NIM) to 1.93 per cent (1H FY2024: 1.79 per cent), alongside the growth in loans and financing.

“Continuing operations’ net income was 5.8 per cent higher y-o-y, led by NII and non-interest income (NoII) growth of 6.5 per cent and 4.0 per cent, respectively,” it said in a separate statement.

Net impairment charges were reduced to RM57.2 million (1H FY2024: RM203.5 million) due to lower net impairment charges in Retail Banking and Business Banking and higher provision reversals in Wholesale Banking.

As a result, the bank said profit after tax and minority interests (PATMI) grew 18.0 per cent y-o-y to RM1.00 billion, improving annualised return on equity to 10.1 per cent (1H FY2024: 9.3 per cent) and return on assets to 1.02 per cent (1H FY2024: 0.89 per cent). 

Gross loans, advances and financing growth was flat year-to-date (YTD) at RM134.5 billion but grew 2.8 per cent y-o-y, driven by Business Banking loans growth of 7.0 per cent YTD and 16.7 per cent y-o-y.

Customer deposits fell 4.3 per cent YTD to RM136.3 billion but grew 0.7 per cent y-o-y. Time deposits remained flat YTD at RM90.2 billion. Current account and savings account (CASA) balances fell 12.7 per cent YTD to RM46.1 billion, resulting in a lower CASA mix of 33.8 per cent

Moving into the second half of FY2025, AmBank said the group will focus on growing its loan book, particularly the small and medium enterprises and mid-corporate segment while repositioning its Retail banking segment.

“The bank will also build and expand its wealth management propositions as well as develop efficient supply chain solutions for customers.

“Furthermore, through digitalisation efforts, the Group is committed to improving customers’ experience via enhanced process efficiency and customer-focused productivity tools,” it said.

The bank added that in line with Malaysia’s improving economic prospects, the group remains optimistic about its prospects for FY2025 and is mindful of market volatility stemming from geopolitical risks.

The bank has declared a single-tier interim dividend of 10.3 sen per ordinary share for FY2025, up 71.7 per cent y-o-y, which translates to a 34 per cent dividend payout ratio for 1H FY2025, payable on Dec 30, 2024.

-- BERNAMA