The banking group announced on Tuesday its net profit rose by 5.9% to RM347.59mil from RM328.27mil. Revenue increased by 4.3% to RM2.17bil from RM2.08bil. Earnings per share were 11.56 sen from 10.92 sen.
It said income rose 3.2% to RM1.014bil, supported by higher net interest income (NII) (+4.7%). Net interest margin (NIM) was stable at 2.02%
AMMB said expenses fell by 7% to RM513mil, reflecting savings from lower headcount and business efficiency initiatives.
It recorded profit before provision (PBP) of RM501mil, which was an increase of 16.7%.
The banking group's return on equity (ROE) was 8.3%, return on assets (ROA) of 0.99%2 and basic earnings per share (EPS) of 11.56 sen
“Cost-to-income (CTI) ratio improved to 50.6% from 56.3 % in Q1FY18 Gross loans and financing grew 2.2% year-to-date (YTD) to RM98.4bil.
“Gross impaired loans (GIL) ratio of 1.77%, loan loss cover (LLC) ratio higher at 106.3% (FY18: 100.5%),” it said.
AmBank Group CEO Datuk Sulaiman Mohd Tahir said: “After a year of putting in place a series of fundamental changes, we have today a solid platform to grow further, as our Q1FY19 results point to a reasonable start to the new fiscal year.
“Our Q1FY19 income growth was broad based. NIM remained stable at 2.02%. Our operating leverage improved with CTI of 50.6%. We saw a strong pre-provision profit growth of 16.7% compared to 3.2% in Q1FY18.
“At RM501mil, this is the highest profit before tax recorded since Q4FY15, a testament to the strength of our Top 4 strategy. Credit costs were still negligible considering our asset base. Overall, we recorded higher profitability and improved returns in Q1FY19.”
Sulaiman said that NII continued to grow steadily at 4.7% on-year to RM642mil, underpinned by consistent loans growth of 2.2% on a year-to date (YTD).
“Non-interest income (NoII) was flat on-year at RM372mil. Wealth management fee income continued to increase with a 8.7% growth on-year coupled with improved performance from our insurance business, mitigating global markets and investment banking results which were impacted by weaker market sentiments.
“As a result of our concerted efforts over the past year to implement a philosophy of stronger cost discipline, expenses were down 7% on-year to RM513mil,” he added.
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