AMMB Q3 net profit up 4% on rising net interest income - Business News | The Star Online


AMMB Q3 net profit up 4% on rising net interest income

PETALING JAYA: AMMB Holdings Bhd , which is undergoing a transition plan, posted a 4.3% rise in net profit in the third quarter ended Dec 31, 2016 to RM313.17mil from RM300.15mil a year ago, on higher net interest income (NII).

The sixth largest lender in the country told Bursa Malaysia that the 5% rise in NII was supported by 2.2% growth in net interest margin (NIM), which reflected active margin management.

Despite higher gross loans, advances and financing, AMMB’s revenue was down 6.5% to RM1.98bil, from a year ago. Basic earnings per share was 10.42 sen from 9.99 sen, previously.

AmBank Group chief executive officer Datuk Sulaiman Mohd Tahir said the bank was actively managing NIM.

“We see improving loans and deposits growth momentum, which increased 4% during the quarter. Loans extended to small and medium size enterprises, one of our key strategic growth segments, grew strongly at 10.6% year-to-date,” Sulaiman said in a separate statement, adding that the banking group’s recoveries were mainly form retail while impairment charge was stable quarter-on-quarter.

For the cumulative nine months ended Dec 31, 2016, AMMB’s net profit slipped 3.3% to RM988.79mil from RM1.02bil a year ago, mainly due to lower NII that was impacted by heightened pressures in the country’s bond market. This was partially offset by higher fee income from loans and trade finance.

Revenue for the nine months was 2.7% lower at RM6.14bil from RM6.31bil a year ago.

AMMB Holdings Bhd