KUALA LUMPUR: AMMB Holdings Bhd closed its first financial quarter ended June 30 with a 12.62% year-on-year (y-o-y) jump in net profit to RM391.46mil on the back of higher trading and insurance income.
Total income rose 5% to RM1.06bil despite the softer lending environment amid improvements in both net interest income and non-interest income.
The group also recorded a net write-back of provision of corporate loans, which resulted in a net recovery of RM32.5mil as compared to an impairment charge of RM7mil in the previous year.
According to Ambank group CEO Datuk Sulaiman Mohd Tahir, the group's business transformation programme has helped to reduce the cost-to-income ratio to 49.7% from 50.6% a year ago, while operating expenses were contained to a 3.1% y-o-y increase to RM528.6mil.
"This is a testament to our transformation strategy which has placed the Group on a stronger footing to weather the more challenging operating landscape," he added.
Moving forward, Sulaiman said the group will be rolling out more digitial initiatives while remaining focused on its cost efficiencies through its BET300 programme.
For the quarter under review, the group's gross impaired loan ratio stood at 1.66% with loan loss cover at 111.5%.
Gross loans grew 2.5% y-o-y despite contracting 1% year-to-date (YTD) to RM100.8bil on declining corporate loan repayments and auto loans.
However, mortgage loans increased 1.7% YTD to RM34.7bil while loans in the retail SMEs and business banking segments grew 6% and 1.1% YTD respectively.
Total customer deposits rose 4.2% y-o-y but fell 3.9% YTD at RM102.8bil.
Current accounts and savings accounts (CASA) stood at RM23.1bil, with CASA mix at 22.5%.
The group’s capital position is adequate with the FHC CET1 ratio at 11.9% and total capital ratio at 15.4%