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BUSINESS • 20/08/2025 04:58 PM

AmBank Targets Loan Growth In Line With Industry, Aims FY2026 Net Profit To Exceed RM2 Bln

KUALA LUMPUR, Aug 20 (Bernama) -- AMMB Holdings Bhd (AmBank) expects its loan growth to keep pace with the industry at around 4 per cent this year, driven mainly by business banking and wholesale segments, while retail loans are expected to remain flat.

Group chief executive officer Jamie Ling said the bank’s focus will remain on higher-return portfolios. 

“Business banking loans grew 12 per cent last year (financial year 2025 ended March 31, 2025),  wholesale banking expanded 7 per cent, while retail declined by 2 per cent as we prioritised quality and returns over market share,” he said at a media briefing after the group’s 34th annual general meeting here today.

He said the group is also aiming to surpass last year’s record net profit of RM2 billion. 

“In the first quarter of the current financial year (1Q FY2026), we posted RM516 million in net profit, keeping the group on track despite softer investor sentiment and market uncertainties. 

“We want to beat last year’s record. That is the ambition,” Ling said, noting that volatility in trading and opportunities in wholesale and business lending could help sustain momentum.

He said volatility signals uncertainty, but for a bank’s market division, it can boost revenue streams, especially when coupled with solid demand for business and wholesale banking services.

On margins, Ling said AmBank achieved a record net interest margin (NIM) of 2.01 per cent last year, the highest since he took office (in Nov 2023).

However, with the recent overnight policy rate cut, this is expected to compress full-year NIM by three to four basis points to around 1.96-1.97 per cent. 

“Last year’s effort to improve our funding mix helped us cushion this impact,” he added.

Ling said AmBank’s diversified business mix helped offset softer investment banking and fund management performance in FY2025, with capital market pipelines expected to recover once tariff uncertainties ease.

“Looking ahead, the group’s 2029 roadmap is expected to lift return on equity towards 11 per cent through a mix of revenue growth, disciplined cost management and investments in technology and wealth management. 

“We must grow revenues faster than costs while investing in data, cloud and digital foundations to secure long-term competitiveness,” he said.

-- BERNAMA

 

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