AmBank net profit for third quarter increases to RM382mil

AmBank Group CEO Datuk Sulaiman Mohd Tahir(pic) said: “The banking group has once again managed to outpace the macroeconomic and geopolitical headwinds plaguing the sector."

PETALING JAYA: AMMB Holdings Bhd (AmBank Group) registered a 9.2% year-on-year increase in net profit to RM382.15mil for the third quarter of the financial year ending March 31,2020 (FY20).

The bank’s net profit for the first nine months of FY20 rose 4.5% to RM1.09bil, as compared to the corresponding period last year.

This was mainly driven by stronger net interest income (NII) and non-interest income as well as higher investment banking fee income, but partially offset by softer general insurance income.

During the nine-month period in FY20, Ambank’s total income grew 9.1% to RM3.24bil, driven by consistent NII growth of 6.1%, with a stable net interest margin of 1.93%.

Non-interest income increased by 14.9% on the back of strong fixed income trading gains and higher investment banking fee income.

In a press release yesterday, AmBank said its expenses increased by 5% at RM1.6bil while cost-to-income (CTI) ratio improved further to 49.6% from 51.6% a year ago, delivering a positive JAWS of 4.1%.

It recorded strong profit before provision growth of 13.5% to RM1.63bil.

“The net impairment charge of RM133.5mil, as compared to a net recovery of RM33.4mil in the first nine months of FY19, was largely due to increased gross provisions charged for wholesale banking and business banking, coupled with lower recoveries from wholesale banking and retail banking, ” it said.

AmBank Group CEO Datuk Sulaiman Mohd Tahir said: “The banking group has once again managed to outpace the macroeconomic and geopolitical headwinds plaguing the sector.

“We stepped up our revenue growth momentum to record a robust 9.1% growth year-on-year in total income as a result of net interest income growth, strong trading gains and investment income as well as higher investment banking fee income.

“Testament to our strict cost discipline, we were able to make notable progress in cost efficiency, achieving a cost-to-income of 49.6% compared with 54.3% in FY19.

“As a result, we delivered strong profit before provision growth of 13.5%, ” he said.

Speaking on the group’s recent initiatives, Sulaiman noted that Ambank has been recently appointed as the primary banker for Luno, the first regulator approved cryptocurrency exchange in Malaysia.

He said AmBank has invested in developing an infrastructure in accordance with regulatory requirements that allows for transaction monitoring and customised reconciliation that facilitates the seamless operations of the Luno exchange.

Apart from that, Ambank has launched a new comprehensive policy, Flexi SME365 under AmGeneral Insurance, which comes as part of the bank’s focus to drive growth in the Small and Medium Enterprise (SME) segment and expand financial solutions for SME customers.

“SMEs now have the flexibility on the sum insured, the options to select the types of risk insured and the benefits of having one policy for all coverage.

“This simplified product provides insurance protection with comprehensive coverage.

“We envisage that the introduction of Flexi SME365 will create a great opportunity to close the coverage gap in terms of underinsured and non-insured SMEs in Malaysia, ” said Sulaiman.

He added that due to the Covid-19 coronavirus outbreak, AmBank Group will offer temporary deferment or restructuring of instalment repayments for its individual and SME customers.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 18
Cxense type: free
User access status: 3

Did you find this article insightful?


100% readers found this article insightful

Next In Business News

Asia stocks set for small gains Friday as US advances fiscal stimulus
Airports reject vaccine requirement as travel debate intensifies
Palm oil demand will be limited if prices continue to rise
Global oil benchmark Brent rises to highest since March
Cocoa prices steady as focus turns back to low exchange stocks
Nasdaq hits record high lifted by Tesla
Oil and gas activity to pick up next year
Indian central bank likely to hold rates amid inflation
Good earnings visibility for Serba Dinamik
Maxis Bhd buys Audeonet in acqui-hire deal

Stories You'll Enjoy