PETALING JAYA: Having posted a record net profit for the financial year ended March 31, 2026 (FY26), AMMB Holdings Bhd
(AmBank Group) says it is prepared for more challenging conditions ahead, having begun FY27 on a strong footing.
The lender, one of the largest banking groups in the country, registered a record bottom line of RM2.1bil in FY26, representing a 5% year-on-year (y-o-y) growth, as revenue also climbed 4.7% to RM5.16bil.
For the fourth quarter ended March 31, 2026 (4Q26), AmBank Group saw net profit inch up 1.3% y-o-y to RM520.5mil, as turnover registered a similar increase to RM1.3bil.
In a filing with Bursa Malaysia, the group attributed the positive yearly showing to improvements in both net interest income (NII) and non-interest income (NOII), reporting: “NII rose 4.5% y-o-y to RM3.73bil, underpinned by a four basis points expansion in net interest margin (NIM) to 1.98% and strong loan growth.”
AmBank Group observed that its NOII grew 5.1% y-o-y to RM1.43bil in FY26, driven by higher securities trading gains from its group treasury and markets (GTM) segment and a resilient performance from the group wealth management division, although these were partially offset by lower fee income from investment banking and business banking.
While pointing out that overall expenses grew 4.8% y-o-y to RM2.3bil, largely driven by higher personnel costs, it said cost optimisation efforts had helped to maintain the cost-to-income ratio at 44.7%.
“As a result, profit before provisions increased 4.5% y-o-y to RM2.85bil,” said the bank.
AmBank Group noted that net impairment charges had reduced by RM10.3mil to RM133.6mil, primarily due to higher writeback of provision in wholesale banking and a recovery of RM50.7mil from a retail debt sale, which were partially offset by higher charges in expected credit losses and provisions in business banking.
Compared to the preceding quarter ended Dec 31, 2025, AmBank Group, nevertheless, saw net profit soften 1.7% from RM529.6mil, despite revenue actually increasing 1.3% from RM1.28bil.
The lender explained that its NII declined by a marginal 0.5% quarter-on-quarter (q-o-q) to RM937.1mil due to day-count effects of a shorter quarter, despite loan growth and a one basis point NIM improvement to 1.97%.
“NOII grew 6.3% q-o-q to RM359.1mil driven by higher investment banking and corporate banking fee income and GTM trading gains,” said AmBank Group.
“Total operating expenses increased 1.7% q-o-q to RM590.8mil mainly due to higher personnel expenses, marketing expenses and professional fees.”
Notably, the group proposed a dividend of 22.5 sen per share for 4Q26, bringing the total dividend declared for FY26 to 35 sen, compared to a total dividend of 30.2 sen declared for FY25.
Group chief executive Jamie Ling commented that the bank had closed FY26 on a positive note, and besides delivering a record net profit with a return on equity of 10%, he said the group’s balance sheet remains robust, with strong capital ratios and ample liquidity.
“We increased our dividend per share by 16%, which represents a 55% dividend payout ratio for FY26,” he noted.
Looking ahead, Ling opines that Malaysia’s economic indicators for the first quarter of the calendar year 2026 had remained steadfast.
Nevertheless, he cautioned that the resolution of the Middle East conflict remains uncertain, with a prolonged conflict scenario posing risk to global economic growth due to higher energy and commodity prices as well as supply chain disruptions.
As such, AmBank Group is anticipating Malaysia’s growth to moderate amid heightened global uncertainties before highlighting that the economy will see material effects only emerging from the second half of 2026.
“There is currently no immediate recession risk. Unlike past crises, the current environment remains relatively resilient despite the global oil supply crunch,” said the bank.
It said the key uncertainty remains on the durability of consumption demand if global oil prices remain elevated for longer as well as the effects of disrupted supply chains feeding through to higher costs of production across key industrial and manufacturing sectors.
“We are prepared for more challenging operating conditions ahead. However, we start from a position of strength and remain responsive to support our customers,” Ling added.
