KUALA LUMPUR: AMMB Holdings Bhd (AmBank) remains upbeat on delivering a strong financial performance in FY23 as it benefits from the uptrend in the overnight policy rate, lower provisions and improving asset quality.
Amid the recovery, the group said it remains focused on the execution of Focus 8 to deliver more integrated value propositions and create sustainable long-term value for all its stakeholders.
"The group’s key focus areas in FY23 include accelerating its digital transformation, forming more strategic partnerships as well as embedding environmental, social and governance (ESG) considerations into all its strategies, businesses and operations," it said in a filing with Bursa Malaysia.
In the second financial quarter ended Sept 30, 2022, the group posted a net profit of RM435.4mil, which was 35.62% higher from the same quarter in 2021.
Earning per share rose to 13.15 sen from 9.69 sen in the comparative quarter.
Meanwhile, revenue was slightly higher at RM1.18bil compared with RM1.12bil in 2QFY22.
Over the six months to Sept 30, 2022, net profit was RM854.6mil on the back of revenue of RM2.35bil. This compared with net profit of RM707.64mil on revenue of RM2.36bil in 1HFY22.
The group has proposed an interim dividend of six sen per share, which represents a dividend payout of 23%.
According to AmBank, net interest income for the six months period was up 10.4% year-on-year (y-o-y), raising net interest margin to 2.17%.
The group recorded a lower impairment charge of RM266.9mil for the period, which included a RM116mil impairment of the Kunia brand, agent relationship and other AmGeneral Insurance Bhd assets, compared with RM377.1mil in the previous year.
Non-interest income however fell 24.5% y-o-y due to the disposal of AmGeneral and lower fee income from investment banking and wealth management.
During the period, the group recorded a one-time disposal loss of RM49.7mil after deduction of net assets disposed including goodwill, impairment of AmGeneral intangibles and transaction expenses.
The group said it received RM286.9mil in cash which improved common equity Tier-1 by 0.25% and also retained a 30% equity interest in the combined businesses of AmGeneral and Liberty Mutual Insurance Bhd valued at RM958.2mil.
The group reported diversified growth across its business segments, represented by a 3.6% increase in gross loans and financing to RM124.4bil.
Customer deposits stood at RM121bil with a 2.1% increase in time deposits while current account savings account (Casa) fell 7.6% to RM39.8bil, owing to the reduction in wholesale banking.
Consequently, Casa mix was lower at 32.9% while liquidity coverage ratio stood at 142.7% as at end-September 2022.
Financial holding company common equity Tier-1 (FHC CET1) stood at 12.57% and total capital ratio was 15.79%.
Excluding transitional arrangement, the FHC CET1 ratio was 12.17% while the total capital ratio was 15.63%.
In a separate statement, group CEO Datuk Sulaiman Mohd Tahir said it is encouraging to see strong economic activities accompanied with the influx of foreign investments and strong domestic and foreign demand in the Malaysian econnomy.
"We foresee these factors supporting the growth momentum of our economy well into 2023," he said.
"With the declaration of an interim dividend of six sen per share, we are well on track to revert to our historical payout pattern.
"Moving forward, we will continue with our efforts to strengthen the group's position and play our part in the recover of our nation's economy," he added.